Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): long positions with entry at 4,340 price level, with 4,020 as a stop-loss and 4,640 as an initial price target.

Stocks trade within a short-term consolidation. Will they resume the uptrend? Or is this a topping pattern?

The S&P 500 index lost 0.04% on Monday, as it fluctuated following its last week’s rally and an over 300-point rebound from the previous Monday’s local low. This morning the index is expected to open 0.2% higher. We will likely see another intraday consolidation. For now, it looks like a flat correction within an uptrend.

Futures Contract Fluctuates Along the 4,450 Level

Let’s take a look at the hourly chart of the S&P 500 futures contract. On Friday it broke above the early March local highs of around 4,400. It’s the nearest important support level right now. We may see a correction following the recent run-up. However, there have been no confirmed negative signals so far.

We are maintaining our profitable long position from the 4,340 level, as we are still expecting a bullish price action in the near-term (chart by courtesy of http://tradingview.com):

Conclusion

Stocks will likely open slightly higher this morning. We may see a short-term consolidation following last week’s rally.

The war In Ukraine is still a negative factor for the markets.

Here’s the breakdown:

• The S&P 500 index trades within a short-term consolidation following its last week’s rally.
• We are maintaining our profitable long position (opened on Feb. 22 at 4,340).
• We are still expecting an advance from the current levels.

As always, we’ll keep you, our subscribers, well-informed.

Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): long positions with entry at 4,340 price level, with 4,020 as a stop-loss and 4,640 as an initial price target.

Thank you.

Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care