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 retraced most of their recent advances yesterday as banking crisis fears reappeared.
The S&P 500 index lost 1.58% on Tuesday as it sold off following quarterly earnings releases, renewed banking crisis fears, among other factors. Last week on Tuesday the index reached new medium-term high of 4,169.48 and yesterday’s daily low was at 4,071.38. Recently the index kept advancing from its March 13 local low of 3,909.16.
Stocks are expected to open 0.3% higher this morning. The market will likely bounce following yesterday’s earnings releases from GOOG, MSFT, V and today’s from BA, among others. The index broke below the recent trading range as we can see on the daily chart:
Futures Contract Trades Close to 4,100
Let’s take a look at the hourly chart of the S&P 500 futures contract. It went to the 4,100 level yesterday and since then it’s been trading along that support level. The next support level is at 4,080. On the other hand, the resistance level is now at 4,120-4,140, among others.
Conclusion
The S&P 500 index will likely open 0.3% higher this morning. It may see some short-term uncertainty following yesterday’s decline. The market will be waiting for more earnings releases. Today after the session’s we will get a report from META, and tomorrow there will be releases from AMZN and INTC, among others.
Here’s the breakdown:
- The S&P 500 retraced most of the recent advances; the market is in a short-term downtrend.
- 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
