Trading position (short-term, our opinion; S&P 500 futures contract): In my opinion, the short-term outlook is bullish and long positions are currently justified from the risk/reward point of view (since Feb. 27 before open).
The S&P 500 bounced from the new local low yesterday – was it a bottom?
The S&P 500 index gained 0.76% on Thursday, after going down to the new local low of 3,928.16. The market bounced to the daily high of 3,990.84, as it retraced its Tuesday’s-Wednesday’s decline. Recently it was selling off on interest rate, Russia-Ukraine war fears, among other factors.
Stocks will likely open 0.6% higher this morning and the S&P 500 will break above the 4,000 level and extend its yesterday’s rebound. The market is basically trading sideways this week, 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 went to new local low yesterday, before bouncing and reversing its intraday downtrend. This morning it’s trading close to the short-term downward trend line. The support level is at 3,940-3,960, and the resistance level is at 4,020, among others.
Conclusion
The S&P 500 index will likely extend its yesterday’s rebound this morning. It will likely break above the 4,000 mark. It still looks like an upward correction, however, that may also mean an upward reversal.
Here’s the breakdown:
- Stocks will extend their yesterday’s rebound this morning.
- The S&P 500 index went close to the 4,000 level again and it will likely break above it; for now, it looks like an upward correction.
- 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 currently justified from the risk/reward point of view (since Feb. 27 before open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
