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).
Stocks will open lower today – is it just a correction?
The S&P 500 index gained 0.12% on Monday as it remained close to the Friday’s new medium-term high of 4,458.48. On Friday the index was the highest since April of 2022. It retraced all of its recent declines following economic data releases, among other factors. Monday’s trading session was shorter than usual, hence lower price range and sideways trading action.
There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but the investors’ sentiment remains bullish.
Stocks are expected to open 0.5% lower this morning. The market may see more short-term uncertainty following its recent rally. The index remains close to the 4,450 mark as we can see on the daily chart:
Futures Contract Bounced From 4,500
Let’s take a look at the hourly chart of the S&P 500 futures contract. Last week it rallied to the 4,500 level again. Today it’s trading around 30 points below that resistance level. On the other hand, the support level is at 4,450, among others.
Conclusion
The S&P 500 index will likely retrace some of its Friday’s rally today. There have been no confirmed negative signals so far. However, the market may see a more pronounced profit taking action at some point.
Here’s the breakdown:
- The S&P 500 is expected to retrace some of its recent rally.
- There have been no confirmed negative signals, however, a short-term downward correction may be in cards.
- 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
