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 went sideways on Thursday, as investors awaited today’s monthly jobs data release. This morning they will open lower, but is this a downward reversal or just a correction?
The S&P 500 index lost 0.08% on Thursday, as it fluctuated following the recent advances and a breakout above the 4,100 level. Recently the broad stock market’s gauge has been extending 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 is expected to open 1.1% lower following higher than expected Nonfarm Payrolls number release. We may see a downward correction or a consolidation.
Futures Contract – More Short-Term Fluctuations
Let’s take a look at the hourly chart of the S&P 500 futures contract. It retraced the recent advance following monthly jobs data release. The resistance level remains at 4,150-4,200, and the support level is at 4,080, among others.
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 will likely open much lower this morning following the monthly jobs data release. Is this a topping pattern? For now, it looks like a downward correction within an uptrend.
Here’s the breakdown:
- The S&P 500 will likely open much lower this morning; stocks may enter a downward correction following the recent advances.
- 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
