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 trades sideways following its last week’s rally, will the uptrend resume?
The S&P 500 index gained 0.24% on Tuesday as it fluctuated within a relatively narrow trading range, slightly below the 4,300 level. On Monday the market reached new medium-term high of 4,299.28. It was the highest since August of 2022. There is still a lot of uncertainty concerning monetary policy amid the debt ceiling deal, recent economic data releases, some technology stocks’ valuation, but the overall, investors’ sentiment remains bullish.
Stocks will likely open 0.1% higher this morning, so the S&P 500 will further extend its consolidation. Recently it above a two-month-long trading range as we can see on the daily chart:
Futures Contract Trades Just Below 4,300
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading slightly below the level. The resistance level is at 4,300 and the support level remains at 4,250, among others.
Conclusion
The stock market went sideways following its Friday’s rally. For now it looks like a relatively flat correction within an uptrend. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 remains close to the 4,300 level as it trades the highest since August of last year.
- There have been no confirmed negative signals so far.
- 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
