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).
Stock prices went up on Monday – will they continue higher?
The S&P 500 index gained 0.63% yesterday as it retraced more of its last Thursday’s decline of 1.4%. On Friday the market bounced from the daily low of around 4,356 after a hawkish speech from the Fed Chair Powell. Recently the market was selling off on strengthening U.S. dollar, among other factors.
Stocks will likely open virtually flat today. The index trades along an over month-long downward trend line as we can see on the daily chart:
Futures Contract Extends a Consolidation
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading within a consolidation. The support level is at 4,400 and the resistance level is at 4,470, among others.
Conclusion
The S&P 500 index will likely go sideways following Friday’s and Monday’s advances. It is still trading within a consolidation following the recent declines. Today the market will be waiting for important CB Consumer Confidence and JOLTS Job Openings releases at 10:00 a.m.
Here’s the breakdown:
- Stock prices retraced their last Thursday’s decline.
- The S&P 500 may break above a month-long downward trend line.
- In my opinion, the short-term outlook is still 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
