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).
The S&P 500 accelerated its uptrend after the jobs data on Friday, but will the uptrend continue?
The S&P 500 index gained 1.45% on Friday, as it broke above its recent local high and accelerated higher towards the 4,300 level. It was the highest since August of 2022 following better-than-expected monthly Nonfarm Payrolls release. The daily high was at 4,290.67. There is still a lot of uncertainty concerning monetary policy amid the debt ceiling deal, recent economic data releases, some technology stocks’ valuations. However, the overall investors’ sentiment remains bullish.
Stocks will likely open virtually flat today and the S&P 500 index may fluctuate after its last week’s rally. It may see a profit-taking action at some point. The index broke above its two-month-long trading range as we can see on the daily chart:
Futures Contract Remains Close to Local High
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it is trading sideways. The nearest important resistance level is at around 4,300 and the support level is at 4,280, among others.
Conclusion
The S&P 500 is expected to open virtually flat following its Thursday’s-Friday’s rally. It will likely retrace some of the advance, however, there have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 broke above its weeks-long trading range on Friday.
- 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
