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).
The stock market is very volatile – is it forming a short-term bottom?
The S&P 500 index lost 0.15% on Monday, as it fluctuated following the recent sell-off. The market reached new local low of 3,808.86 and the daily high was at 3,905.05. Stocks extended their downtrend on more news about the troubled Silicon Valley Bank (SIVB) and the ongoing U.S. banking crisis. Yesterday the index was the lowest since January 5.
The S&P 500 index is expected to open 1.1% higher this morning following as-expected Consumer price index release. The market trades within the December consolidation as we can see on the daily chart:
Futures Contract Trades Along 3,900
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s bouncing back above the 3,900 level. The resistance level is at around 3,980-4,000, and the support level is at 3,850, among others (June S&P futures contract).
Conclusion
Stocks will likely open higher this morning, but we may see some more short-term uncertainty as the banking crisis dominates the news. The market may be forming a short-term bottom here, however, there have been no confirmed positive signals so far.
Here’s the breakdown:
- The S&P 500 fluctuates following its recent sell-off. It may be forming a bottom here, however, it still may be only a consolidation within a downtrend.
- 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
