Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view (since Feb. 27).
S&P 500 further extended its declines yesterday – did it reach a short-term bottom?
The S&P 500 index lost 0.45% on Monday as it slightly extended its over week-long decline following the recent rally and a breakout above the 4,400 level. The market went closer to the 4,300 level yesterday.
There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but overall, the investors’ sentiment remains bullish.
Stocks are expected to open 0.2% higher this morning. So the S&P 500 will likely go sideways ahead of the important CB Consumer Confidence number release at 10:00 a.m. Last week the S&P 500 broke below its upward trend line as we can see on the daily chart:
Futures Contract Remains Below 4,400
Let’s take a look at the hourly chart of the S&P 500 futures contract. It rallied up to around 4,500 level on Friday, June 16. Since then it has retraced over 100 points. The support level is still at 4,380 and the resistance level is at around 4,400-4,420.
Conclusion
The S&P 500 will likely go sideways this morning. It still looks like a correction within an uptrend and the index remains well above its local highs from April and May. Investors will be waiting for the CB Consumer Confidence release at 10:00 a.m.
Here’s the breakdown:
- The S&P 500 will likely fluctuate following its week-long declines.
- For now it looks like a correction within an uptrend.
- In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are still justified from the risk/reward point of view (since Feb. 27).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
