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).
Stock prices went sideways on Friday – will they resume their uptrend?
The S&P 500 index gained 0.09% on Friday as it continued to fluctuate above the 4,100 level. On Tuesday it reached new medium-term high of 4,169.48 and on Friday the daily low was at 4,113.86. Recently the index kept advancing from its March 13 local low of 3,909.16. It rallied ahead of the coming quarterly earnings releases, among other factors.
Stocks are expected to open virtually flat today. The will extend a short-term consolidation following Thursday’s decline. The index continues to trade along its early February topping pattern, and below the important resistance level of 4,200 as we can see on the daily chart:
Futures Contract Remains Close to 4,150
Let’s take a look at the hourly chart of the S&P 500 futures contract. It continues to trade along the 4,150 level. The support level is at 4,100-4,120 and the resistance level remains at 4,175-4,200.
Conclusion
The S&P 500 index will likely continue sideways today as it is expected to open basically unchanged. The market will be waiting for more important earnings releases this week. Tomorrow we will get reports from GOOG and MSFT, on Wednesday from META, and on Thursday from AMZN and INTC, among others. There have been no confirmed negative signals so far and it looks like a correction within an uptrend.
Here’s the breakdown:
- The S&P 500 will likely extend its short-term consolidation ahead of the quarterly earnings releases.
- For now it looks like a correction as 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).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
