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 go sideways – is this just a consolidation within an uptrend?
The S&P 500 index gained 0.3% on Thursday following a volatile trading session as investors continued to hesitate following the Fed, banking crisis, among other factors. The Wednesday’s daily high was at 4,039.40, and the S&P 500 was the highest since March 7 and yesterday the daily low was at 3,919.05.
Last week on Monday the index bounced from the local low of 3,808.86, and it was the lowest since January 5. Stocks extended their downtrend on news about the Silicon Valley Bank (SIVB) and the other mid-sized U.S. banks’ situation.
Stocks are expected to open 0.7% lower on a renewed bank worries. The S&P 500 continues to trade below the 4,000 level as we can see on the daily chart:
Futures Contract - New Short-Term Low
Let’s take a look at the hourly chart of the S&P 500 futures contract. It extends a short-term decline this morning, as markets react to the Deutsche Bank stock price sell-off. The support level is at around 3,900 and the resistance level remains at 4,000-4,050.
Conclusion
The S&P 500 index will likely open lower this morning and it may extend its short-term decline following the Wednesday’s Fed’s release. The market continues to fluctuate along its late February consolidation. For now, it looks like a correction within an uptrend.
Here’s the breakdown:
- Stocks continue to fluctuate following Wednesday’s Fed.
- Today the S&P 500 will likely remain below 4,000 as the banking crisis comes back.
- 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
