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 S&P 500 index went lower following the CPI release. The market may extend its consolidation.
The S&P 500 index lost 0.41% on Wednesday as it extended an over week-long consolidation. The market reached new medium-term high of 4,134.37 before getting back below the 4,100 level yesterday. It was the highest since February 16. Recently the index was advancing from March 13 local low of 3,909.16.
Stocks are expected to open 0.3% higher this morning following lower-than-expected Producer Price Index release. It was at -0.5% m/m vs. the expected 0.0%. The broad stock market remains within its early February topping pattern, and below the important resistance level of 4,200 as we can see on the daily chart:
Futures Contract Trades Along the Trend Line
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading sideways. The market is now close to its month-long upward trend line. The resistance level is at around 4,170-4,200, and the support level is at 4,100, among others.
Conclusion
The S&P 500 index will likely open higher this morning. However, it may be still trading within an over week-long consolidation. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 index is expected to open higher again on producer inflation data.
- 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
