Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): No positions are currently justified from the risk/reward point of view.
The S&P 500 reached new local high on Wednesday; will it continue the uptrend despite a shortened trading day?
The S&P 500 index gained 0.59% on Wednesday, as it went the highest since September 13 on a weaker U.S. dollar, some better-than-expected economic data releases. It broke slightly above the November 15 local high of around 4,029. Last week on Thursday it bounced from the local low of around 3,907.
This morning the broad stock market index is expected to open 0.2% lower and it may see a short-term consolidation along the 4,000 level. The trading session will be shortened due to long holiday weekend.
Futures Contract is Slightly Lower
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading above the 4,000 level this morning. The resistance level is at around 4,050, marked by the recent local high. On the other hand, the support level is at 3,950-3,960.
In our opinion, no positions are currently justified from the risk/reward point of view. (chart by courtesy of http://tradingview.com):
Conclusion
The S&P 500 is expected to open slightly lower this morning following yesterday’s futures contract’s sideways trading action. We may see some more short-term uncertainty due to a long holiday weekend.
Here’s the breakdown:
- Stock prices will likely fluctuate following their Wednesday’s advance.
- It still looks like a consolidation or a relatively flat correction within an uptrend.
- In our opinion, the short-term outlook is neutral.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): No positions are currently justified from the risk/reward point of view.
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
