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).
Stocks extended their downtrend yesterday, but the S&P 500 managed to stay above the 4,200 level.
The S&P 500 index lost 0.17% on Monday after reaching new medium-term low of 4,189.22. The market is still reacting to rising international tensions, interest rates fears. In early last week the market bounced from the 4,400 resistance level.
Recently stocks were rallying from their local lows along 4,220 level and in the previous week on Tuesday the index reached a local high of 4,394. There’s still a lot of uncertainty about monetary policy, economic growth and geopolitics.
Stocks are expected to open 0.6% higher today. So the S&P 500 index will retrace more of its last week’s declines. Recently it failed to get back above the Sept. 21 daily gap down of 4,375.70-4,401.38 as we can see on the daily chart:
Futures Contract Trades Above 4,250
Let’s take a look at the hourly chart of the S&P 500 futures contract. Today it’s trading above the 4,250 level. The resistance level remains at 4,300, among others. On the other hand, the support level is now at around 4,200-4,220.
Conclusion
Stocks will open higher this morning as investors react to quarterly earnings releases, among other factors. The S&P 500 index may see a rebound or an upward correction following recent declines. The market will be waiting for more quarterly earnings announcements this week. Today after the session’s close we will get important releases from GOOG, MSFT, among others.
Here’s the breakdown:
- Stock prices are bouncing following their last week’s sell-off.
- The S&P 500 managed to stay above the important 4,200 level yesterday, but it reached new medium-term low of around 4,189.
- 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
