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 rallied as the S&P 500 bounced back above 4,100 – will the uptrend continue?
The S&P 500 index gained 1.96% on Thursday as it retraced its Tuesday’s-Wednesday’s declines following quarterly earnings releases, among other factors. On Wednesday the market was the lowest since March 30 with the daily low at 4,049.35 and last week on Tuesday it reached new medium-term high of 4,169.48. Recently the S&P 500 kept advancing from its March 13 local low of 3,909.16.
Stocks are expected to open 0.3% lower this morning. So the market will retrace some of its yesterday’s rally. The index is back within its recent trading range as we can see on the daily chart:
Futures Contract Is Above 4,100 Again
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading within a consolidation this morning. The resistance level is at around 4,160, marked by local highs, and on the other hand the support level is at 4,100-4,120.
Conclusion
The S&P 500 index will likely retrace some of its yesterday’s rally this morning. The market is reacting to yesterday’s earnings release from AMZN, among others. Stocks came back closer to their recent local highs and they may see some more uncertainty ahead of the next week’s earnings release from AAPL and the FOMC Rate Decision.
Here’s the breakdown:
- The S&P 500 retraced its mid-week decline; it may see some uncertainty along the recent highs.
- 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
