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 extended its rebound, but will it resume the uptrend?
The broad stock market index gained 1.10% on Wednesday as it went back above the 4,400 level again. Yesterday’s daily high was at 4,443.18 and on Friday it was 271.76 points or 5.90% below the July 27 medium-term high of 4,607.07. Recently the market was selling off on strengthening U.S. dollar, among other factors. Yesterday it was gaining ahead of economic data, quarterly earnings.
Stocks are expected to open 0.4% higher today after a better-than-expected earnings release from NVDA, among other factors. So the S&P 500 may break above its month-long downward trend line as we can see on the daily chart:
Futures Contract Went Closer to 4,500
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it is trading above the 4,460 level after bouncing from a local high of around 4,485. The nearest important support level is at around 4,440 and the resistance level is at 4.485-4,500.
Conclusion
The S&P 500 will likely extend its short-term uptrend this morning. However, it may see a profit-taking action at some point. Investors will be waiting for the important Fed Chair Powell’s speech at the Jackson Hole Symposium tomorrow.
Here’s the breakdown:
- Stock prices extended their rebound yesterday as the S&P 500 broke above 4,400 again.
- Markets await tomorrow’s Powell speech.
- In my opinion, the short-term outlook is still 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
