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 extended their uptrend on Friday; this week it’s all about CPI and FOMC.
The S&P 500 index gained 0.11% on Friday after reaching new medium-term high of 4,322.62. The market retraced its intraday run-up and it closed slightly below the opening price. There is still a lot of uncertainty concerning monetary policy, the coming economic data releases including Tuesday’s CPI and Wednesday’s FOMC, some technology stocks’ valuation concerns, but overall, the investors’ sentiment remains bullish.
The S&P 500 will likely open 0.3% higher this morning. So the market may continue to fluctuate along the 4,300 level. The index is trading above a month-long upward trend line as we can see on the daily chart:
Futures Contract Remains Close to High
Let’s take a look at the hourly chart of the S&P 500 futures contract (on Thursday it switched to the new September series). This morning it’s trading above the 4,350 level. The support level remains at around 4,300, among others.
Conclusion
The S&P 500 will likely extend its consolidation along the 4,300 level. Investors are waiting for the important CPI release tomorrow and the FOMC Rate Decision on Wednesday, among others. For now it looks like a relatively flat correction within an uptrend. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 will likely continue to fluctuate along the 4,300 level.
- 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
