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 extended their short-term advance – will they reach recent highs today?
The S&P 500 index gained 0.45% on Thursday as it got very close to the 4,400 level. The market retraced more of its recent declines following economic data releases, among other factors. Yesterday the index reached new local high of 4,398.39 and on Monday it was as low as 4,328.08.
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 0.6% higher following as-expected Core PCE Price Index release. So the S&P 500 will retrace more of the declines. Last week it broke below its upward trend line as we can see on the daily chart:
Futures Contract Gets Closer to Previous High
Let’s take a look at the hourly chart of the S&P 500 futures contract. It rallied up to around 4,500 level on Friday, June 16. Then it retreated to around 4,370. This morning the contract trades above the 4,450 level. The resistance level is at 4,480-4,500 and the support level is now at 4,420, among others.
Conclusion
The S&P 500 index will open higher this morning and it will get closer to the recent local high of 4,448.47. There have been no confirmed negative signals so far. However, the market may see some profit taking as it nears the mentioned high.
Here’s the breakdown:
- The S&P 500 is expected to open higher following economic data releases.
- Stocks may resume their medium-term uptrend.
- 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
