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 reached new medium-term high before closing lower – was this a reversal?
The broad stock market index lost 0.04% on Monday as it retraced its intraday advance after bouncing from new medium-term high of 4,186.92. The S&P 500 was the highest since February 2 yesterday. The market extended its rally from last Wednesday’s local low of 4,049.35.
Stocks are expected to open 0.2% lower this morning. So they will likely see more short-term uncertainty. The market will be waiting for series of economic data announcement, including tomorrow’s FOMC Statement release. The S&P 500 bounced from the important 4,200 resistance level yesterday as we can see on the daily chart:
Futures Contract Trades Along Previous Highs
Let’s take a look at the hourly chart of the S&P 500 futures contract. It went slightly above the 4,200 level yesterday. It remains the nearest important resistance level. On the other hand the support level is at 4,140-4,160, among others.
Conclusion
The S&P 500 index will likely extend its short-term consolidation below the 4,200 level this morning. The market will be waiting for the important FOMC Rate Decision release tomorrow and more quarterly earnings releases, including Thursday’s report from AAPL plus Friday’s monthly jobs data release.
Here’s the breakdown:
- The S&P 500 went closer to the important 4,200 level yesterday; the market awaits series of economic data releases.
- 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
