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 retraced some of the recent rally – is the uptrend over?
The S&P 500 index lost 0.61% on Wednesday as it came back below the 4,200 level again. On Tuesday the broad stock market’s gauge reached new medium-term high of 4,231.10 and its yesterday’s daily low was at 4,166.15. There is still a lot of uncertainty concerning monetary policy amid the debt ceiling deal, recent economic data releases, some technology stocks’ valuations.
Stocks will likely open virtually flat this morning. The S&P 500 index remains close to the early February medium-term high as we can see on the daily chart:
Futures Contract Remains Below 4,200
Let’s take a look at the hourly chart of the S&P 500 futures contract. Recently it bounced from the 4,240 level and this morning it’s trading slightly below 4,200. The support level is at 4,170-4,180, among others.
Conclusion
The S&P 500 is expected to open virtually flat this morning and it may see some more consolidation along the 4,200 level. The market will be waiting for tomorrow’s monthly jobs data release. For now it looks like a correction following the recent rally.
Here’s the breakdown:
- The S&P 500 retraced most of its Monday’s rally.
- Stocks may further extend their medium-term consolidation.
- 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
