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 stock market went higher on Friday following better-than-expected economic data releases, the coming quarterly earnings season. But will the short-term uptrend continue?

The S&P 500 index gained 1.92% on Friday, as it went higher within an almost month-long consolidation along the 3,800 level. The broad stock market’s gauge was closer to the 3,900 level and this morning it will likely extend its short-term advance a bit further. The resistance level is still at 3,900-3,950 though.

Futures Contract Trades Along Previous Highs

Let’s take a look at the hourly chart of the S&P 500 futures contract. It got close to the previous highs along the 3,900 level. We may see an attempt at breaking higher.

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 0.8% higher this morning following global stock markets’ advances. We may see an attempt at breaking above the previous local highs.

Investors will now wait for the coming quarterly earnings releases season.

Here’s the breakdown:

• The S&P 500 index will open higher this morning and it may reach the 3,900 level again.
• 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