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 went sideways on Friday – is this a flat correction?
The S&P 500 index lost 0.21% on Friday after reaching new medium-term high of 4,163.19 following lower-than-expected Retail Sales number release. It was the highest since February 7. The index keeps advancing from its March 13 local low of 3,909.16.
Stocks are expected to open 0.1% higher, as the market is waiting for the earnings releases this week. The index remains within its early February topping pattern, and below the important resistance level of 4,200 as we can see on the daily chart:
Futures Contract Trades Along 4,175
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading along the short-term resistance level of around 4,174-4,200. The market remains above its month-long upward trend line.
Conclusion
The S&P 500 index will likely open 0.1% higher this morning. So it may see more short-term uncertainty ahead of the coming earnings releases. Tomorrow we will get reports from BAC, GS, NFLX, and on Wednesday from TSLA, among others. There have been no confirmed negative signals so far. However, we may see a profit-taking action at some point.
Here’s the breakdown:
- The S&P 500 reached new medium-term high on Friday, but overall it extended a consolidation.
- There have been no confirmed negative signals.
- 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
