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 extend their consolidation – will the market break higher?
The S&P 500 index gained 0.56% on Friday, as investors’ sentiment improved despite the banking crisis, rising interest rates worries. The index extended its volatile fluctuations below the 4,000 level. On Wednesday the daily high was at 4,039.40, and the S&P 500 was the highest since March 7. Friday’s daily low was at 3,909.16, but at the end of the day the index was close to the 3,970 level.
Stocks will likely open 0.5% higher this morning, so the index may get close to the 4,000 level again. It continues to trade within a consolidation as we can see on the daily chart:
Futures Contract Trades Above 4,000
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading sideways following last week’s Wednesday’s Fed’s release. The resistance level is at around 4,050-4,100 and the support level is at 3,950.
Conclusion
The S&P 500 index is expected to open higher this morning, and it will likely get close to the 4,000 level again. The market will be waiting for tomorrow’s CB Consumer Confidence release. Stocks extend their consolidation. For now it looks like a correction within an uptrend.
Here’s the breakdown:
- Stocks will likely extend their Friday’s advance this morning.
- The S&P 500 may get to the 4,000 resistance level again.
- In my opinion, the short-term outlook is bullish and long positions are 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
