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).
Stock prices went sideways again - is this a short-term topping pattern?
The S&P 500 index gained 0.09% on Tuesday after reaching new medium-term high of 4,169.48. It closed slightly above the 4,150 level. The index keeps advancing from its March 13 local low of 3,909.16. Last week it rallied ahead of the coming quarterly earnings releases, among other factors.
Stocks will likely open 0.6% lower this morning. So the market is about to retrace some of the recent advances. The index continues to trade 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 – Short-Term Consolidation
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading below the resistance level of 4,175-4,200. On the other hand, the support level remains at 4,150. The market broke slightly below its upward trend line.
Conclusion
Stocks will open lower this morning, as quarterly earnings releases bring some short-term uncertainty. Today after the session’s close we will get a report from TSLA, among others. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 continues to trade sideways following its early April advances.
- 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
