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 before session’s open).
Stocks went sideways yesterday – will the uptrend resume after today’s CPI?
The S&P 500 index was virtually flat on Tuesday as it continued to trade along the 4,100 level. Last Tuesday the S&P 500 reached new medium-term high of 4,133.13 despite the recent banking crisis, Fed’s interest rates worries. The index was the highest since February 16. It was advancing from the March 13 local low of 3,909.16.
Stocks will likely open 0.7% higher this morning following lower-than-expected Consumer Price Index release. The consumer inflation was at +5.0% y/y vs. the expected +5.1%. The broad stock market remains within its early February topping pattern, and below the important resistance level of 4,200 as we can see on the daily chart:
Futures Contract Reaches New High
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading above the recent local high of around 4,170. The next resistance level is at around 4,200, and the support level is at 4,150, among others.
Conclusion
The S&P 500 index is expected to open higher following the CPI release. Recently it traded within a consolidation along the 4,100 level. It may see an attempt at breaking above the April 4 local high. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 index is expected to open higher on consumer inflation data.
- There have been no confirmed negative signals.
- 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
