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.
Stocks extended their short-term fluctuations on Friday, as the S&P 500 index got back to the recent trading range. Will it resume the uptrend?
The S&P 500 index gained 0.48% on Friday, as it bounced from the Thursday’s local low of around 3,907. Last week on Tuesday it reached new medium-term high of 4,028.84 and it was the highest since September 13. In the last trading sessions stock prices fluctuated following their recent rally.
This morning the S&P 500 is expected to open 0.3% lower, so we will see more uncertainty. The markets keep reacting to the Fed’s monetary policy tightening, Russia-Ukraine conflict, and we may see a further consolidation along the S&P 500’s 4,000 level.
Futures Contract Remains Below the 4,000 Level
Let’s take a look at the hourly chart of the S&P 500 futures contract. It continues to trade within a consolidation, below the resistance level of 4,000-4,050. On the other hand, the support level is now at 3,900-3,920.
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 index will likely extend its consolidation today. It is expected to open slightly lower following Friday’s rebound. The broad stock market’s gauge remains relatively close to the 4,000 level.
Here’s the breakdown:
- The S&P 500 bounced from its Thursday’s local low, and today it will likely go sideways.
- 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
