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.
Stock prices declined ahead of earnings releases yesterday, but this morning they’re expected to open higher. Where will the market go following today’s FOMC Rate Decision announcement?
The S&P 500 index lost 1.15% on Tuesday, as it got closer to the 3,900 level again. The broad stock market’s gauge retraced some of its recent advances after bouncing from the 4,000 resistance level last week. Recently stock prices were extending their short-term advance despite the ongoing worries about inflation, tightening Fed’s monetary policy, and Russia-Ukraine conflict. But on Friday the market reversed lower. This morning the S&P 500 is expected to open 0.9% higher and we may see a consolidation ahead of today’s FOMC release.
Futures Contract Remains Below 4,000 Level
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading within a consolidation following the recent advances. The resistance level remains at around 4,000.
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 0.9% higher today following yesterday’s earnings releases from GOOG, MSFT. We will get the important FOMC Rate Decision release at 2:00 p.m. and we’ll likely see an increased volatility. The market will be also waiting for tomorrow’s earnings from AAPL and AMZN, plus the important Advance GDP release.
Here’s the breakdown:
- The S&P 500 is expected to open 0.9% higher this morning; for now, it looks like a short-term 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
