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 before session’s open).
Stock prices extended the uptrend – will the S&P 500 get closer to the 4,100 level?
The S&P 500 index gained 0.57% on Thursday as it extended its Wednesday’s advance of 1.4% despite the banking crisis uncertainty, Fed’s monetary policy. The market went the highest since early March as the index broke above the March 22 local high of around 4,040. The index keeps advancing from its last Friday’s local low of 3,909.16.
Stocks are expected to open 0.2% higher following lower than expected Core PCE Price Index release. The index got closer to its march 6 local high of around 4,078 as we can see on the daily chart:
Futures Contract Trading Sideways
Let’s take a look at the hourly chart of the S&P 500 futures contract. It went closer to the 4,100 level this morning. The market is trading within a short-term consolidation. The resistance level is at around 4,100, and the support level is now at 4,060, among others.
Conclusion
The S&P 500 will likely open slightly higher this morning. There have been no confirmed negative signals so far. However, there are some short-term overbought conditions. The recent consolidation was just a flat correction within an uptrend.
Here’s the breakdown:
- Stocks are expected to open slightly higher this morning.
- The S&P 500 gets closer to its early March local high; it may retrace a part of the advance at some point.
- In my opinion, the short-term outlook is bullish and long positions are 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
