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).
S&P 500 extended its uptrend yesterday – will it get back to 4,400?
The S&P 500 index gained 0.28% on Tuesday as it continued its last week’s advance. The daily high was at 4,386.26, so the market got close to mid-October local high of around 4,394. Investors’ sentiment remains positive despite a lot of uncertainty about monetary policy, economic growth and geopolitics. Last week the index rallied from October 27 local low of 4,103.78.
Stocks are expected to open 0.1% higher today, so the S&P 500 will remain close to the mentioned 4,400 level as we can see on the daily chart:
Futures Contract Is Just Below 4,400
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading very close to the 4,400 level. The resistance level is at 4,400-4,420 and support level is at 4,360, among others.
Conclusion
The S&P 500 index will likely open slightly higher today and it may extend a short-term consolidation below the 4,400 level. On Friday the sentiment improved following worse than expected jobs data, but this week the market is basically going sideways. The index may see a consolidation or a downward correction at some point.
Here’s the breakdown:
- The S&P 500 is trading closer to 4,400.
- There may be some more short-term uncertainty following last week’s rally.
- 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
