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 bounced from new short-term low – is a correction over?
The S&P 500 index gained 0.37% on Thursday as it bounced from the local low of 4,351.82 following economic data releases and Jerome Powell’s Testimony, among other factors. The broad stock market index has lost almost 100 points from its Friday’s new medium-term high of 4,448.47. On Friday it was the highest since April of 2022. There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but overall, the investors’ sentiment remains bullish.
Stocks are expected to open 0.7% lower this morning, so the market may see more short-term weakness. On Tuesday the S&P 500 broke below its upward trend line as we can see on the daily chart:
Futures Contract Trades Below 4,400
Let’s take a look at the hourly chart of the S&P 500 futures contract. It rallied up to around 4,500 level on Friday. Since then it has retraced more than 100 points. The support level is now at 4,380 and the resistance level is at around 4,440.
Conclusion
Stocks are expected to open lower this morning, so they will retrace their yesterday’s rebound. The market may see more short-term volatility. For now it looks like a correction within an uptrend.
Here’s the breakdown:
- The S&P 500 will likely retrace its yesterday’s rebound this morning.
- For now it looks like a correction within an uptrend.
- 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
