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 resumed their uptrend on Friday - will S&P 500 remain above 4,400?
The S&P 500 index gained 1.56% on Friday as it retraced its Thursday’s decline of 0.8% and reached new local high of 4,418.03. The index closed above the resistance level marked by the technically important September 21 daily gap down of around 4,376-4,401. Stocks rallied despite uncertainty about monetary policy, economic growth and geopolitics. The market resumed its rally from October 27 local low of 4,103.78.
Stocks will likely open 0.2% lower today. So the S&P 500 may fluctuate along the 4,400 level for some time. On Friday it was the highest since late September as we can see on the daily chart:
Futures Contract Trades Above 4,400
Let’s take a look at the hourly chart of the S&P 500 futures contract. It’s trading along local highs and above 4,400 level this morning. The next resistance level is at around 4,430-4,450, marked by previous highs and lows.
Conclusion
The S&P 500 index is expected to open slightly lower today. It may see some uncertainty following Friday’s breakout above 4,400 level. The markets will be waiting for the very important Consumer Price Index release tomorrow.
Here’s the breakdown:
- The S&P 500 broke above 4,400 on Friday.
- Stocks extend their uptrend, but there may be some uncertainty ahead of economic data.
- 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
