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).
Stocks went sideways on Monday – will they resume the uptrend?
The S&P 500 index gained 0.05% on Monday as it fluctuated following Friday’s rally of 1.9%. The market is waiting for the important Consumer Price Index release tomorrow. On Thursday the index fell to local low of 4,048.28 and on Friday it traded as high as 4,147. Last week on Monday the S&P 500 was the highest since February 2.
Stocks will likely open 0.4% lower this morning and the index may retrace some of its Friday’s advance. Last week the S&P 500 bounced from the important 4,200 resistance level again as we can see on the daily chart:
Futures Contract Continues Sideways
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading within a few-week-long consolidation. The nearest important resistance level is at around 4,160-4,200, and the support level is at 4,120, among others.
Conclusion
The S&P 500 index is expected to open lower this morning. The market will continue to fluctuate following its Friday’s rally. For now it looks like a further consolidation after March-April advances.
Here’s the breakdown:
- The S&P 500 will likely retrace some of its Friday’s rally this morning.
- The market extends its few-week-long consolidation.
- 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
