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 reversed sharply lower yesterday – is the uptrend over?
The S&P 500 index lost 1.16% on Tuesday as it retraced most of the recent advance before bouncing from the daily low of 4,089.72. The market closed above the 4,100 level following an intraday upward reversal. Investors reacted to renewed fears about the banking crisis, among other factors. On Monday the S&P 500 was the highest since February 2 and recently it was extending a rally from last Wednesday’s local low of 4,049.35.
Stocks will likely open 0.1% higher this morning. The market will be waiting for the important FOMC Statement release at 2:00 p.m. The S&P 500 bounced from the important 4,200 resistance level again as we can see on the daily chart:
Futures Contract Trades Below 4,150
Let’s take a look at the hourly chart of the S&P 500 futures contract. It went closer to the 4,100 level yesterday. The nearest important support level is at around 4,080-4,100 and the resistance level remains at 4,180-4,200.
Conclusion
The S&P 500 index is expected to open slightly higher this morning following better-than-expected ADP Non-Farm Employment Change release. Investors will be waiting for the important FOMC release at 2:00 p.m. and stocks will likely fluctuate following that news. The market will be also waiting for tomorrow’s quarterly earnings release from AAPL plus Friday’s monthly jobs data release.
Here’s the breakdown:
- The S&P 500 retraced most of its recent advances yesterday as banking crisis fears reappeared.
- 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
