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).
Stocks retraced their recent decline yesterday – will the uptrend accelerate?
The S&P 500 index gained 0.99% on Thursday as it quickly retraced all of its Tuesday’s-Wednesday’s decline. Yesterday it reached new medium-term high of 4,232.43 before closing slightly above the 4,220 level. There is still a lot of uncertainty concerning monetary policy amid the debt ceiling deal, recent economic data releases, some technology stocks’ valuations. However, the overall investors’ sentiment remains bullish.
Stocks are expected to open 0.5% higher this morning following better-than-expected Nonfarm Payrolls release. The S&P 500 index will break above its recent trading range as we can see on the daily chart:
Futures Contract Trades Along 4,250
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it is extending its uptrend as investors react to monthly jobs data release. The support level is now at around 4,230-4,240, marked by the recent resistance level.
Conclusion
The S&P 500 will likely open higher this morning and it will break above its recent local highs. The stock market may be a profit-taking action at some point. However, there have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 will extend its uptrend following monthly jobs data release.
- There have been no confirmed negative signals so far.
- 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
