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 traded within a consolidation on Monday – will they resume the uptrend?
Today’s Stock Trading Alert will be shorter than usual, we apologize for inconvenience.
The S&P 500 index gained 0.02% on Monday as it basically went sideways following its last week’s advances. On Friday the broad stock market’s gauge went the highest since last year’s August as investors’ sentiment further improved following economic data releases, debt ceiling deal talks, among other factors. On May 4 the S&P 500 fell to the local low of 4,048.28, but it quickly got back to around 4,150. Recently it broke above the trading range.
Stocks will likely open 0.1% lower this morning so the S&P 500 index will continue sideways for some time. The market may see some further short-term profit taking action as the index is at a potential resistance level of 4,200. The S&P 500 reached new medium-term high as we can see on the daily chart:
Conclusion
The S&P 500 is expected to open virtually flat today. It will continue to fluctuate following Friday’s rally. The stock market keeps extending its uptrend from the mid-March local low. Investors will be waiting for the U.S. PMI numbers release at 9:45 a.m.
Here’s the breakdown:
- The S&P 500 went back to the 4,200 level last week, it is the highest since last year’s August.
- There have been no confirmed negative signals so far.
- 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
