Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): No positions are currently justified from the risk/reward point of view.
The S&P 500 index extended its short-term consolidation on Friday despite monthly jobs data release volatility. Will stock prices break out today?
The broad stock market index lost 0.16% on Friday, after opening much lower following the monthly jobs data release. The S&P 500 extended its short-term consolidation along the 4,100 level. In late July the broad stock market’s gauge has been extending an over month-long uptrend from the medium-term low of 3,636.87 (June 17) despite the ongoing worries about inflation, tightening Fed’s monetary policy, Russia-Ukraine conflict and China-U.S. tensions. This morning the S&P 500 will likely open 0.6% higher and we may see an attempt at breaking out of the consolidation.
Futures Contract is at Local High Again
Let’s take a look at the hourly chart of the S&P 500 futures contract. It broke below the recent upward trend line, but this morning it is getting close to the local high again. The resistance level is also at around 4,200
In our opinion, no positions are currently justified from the risk/reward point of view. (chart by courtesy of http://tradingview.com):
Conclusion
The S&P 500 index is expected to open higher this morning. We may see an attempt at breaking above the recent local high. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 will likely open higher this morning; we may see an attempt at breaking out of a consolidation.
- In our opinion, no positions are currently justified from the risk/reward point of view.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): No positions are currently justified from the risk/reward point of view.
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
