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.
Stocks extended their uptrend yesterday despite short-term overbought conditions. Today we may see some uncertainty and a consolidation, but sentiment remains bullish.
The S&P 500 index gained 1,56% on Wednesday, as it broke above the short-term resistance level of 4,150 and a consolidation along the 4,100 level. The broad stock market’s gauge extended an over month-long uptrend from the medium-term low of 3,636.87 (June 17), despite the ongoing worries about inflation, tightening Fed’s monetary policy, Russia-Ukraine conflict and China-U.S. tensions. This morning the S&P 500 will likely open 0.2% higher, but we may see a consolidation and a profit-taking action at some point.
Futures Contract Trades Along New Local High
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading above the recent consolidation after breaking above the resistance level of around 4,140. The next resistance level is at 4,200.
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 likely to open 0.2% higher this morning. We may see some more uncertainty following yesterday’s advance and possibly an intraday downward correction. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 is expected to open slightly higher this morning; we may see another 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
