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 retraced their Tuesday’s advance - was this a topping pattern or just a correction within an uptrend?
The S&P 500 index lost 1.23% on Wednesday and it came back below the 4,500 level. It retraced some of the recent advance. The broad stock market index gained 360 points in a little more than a week after bouncing from last Monday’s local low of around 4162. There have been no confirmed negative signals so far. This morning the index is expected to open 0.4% higher and we may see a consolidation.
There’s still a lot of uncertainty concerning the ongoing Ukraine conflict, but investors were recently jumping back into stocks despite that geopolitical uncertainty.
Futures Contract Remains Below the 4,500 Level
Let’s take a look at the hourly chart of the S&P 500 futures contract. On Tuesday it broke above the 4,500 level and it was the highest since the early February. The market is trading within a short-term consolidation.
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 and we may see some further fluctuations following week-long rally. The war In Ukraine remains a negative factor for the markets.
Here’s the breakdown:
- The S&P 500 index trades within a consolidation following week-long 360-point 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
