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 continued their uptrend on Friday on weaker U.S. dollar, improving global stock markets’ sentiment. Will they keep advancing this week?
The S&P 500 index gained 1.53% on Friday, as it extended its short-term uptrend following Thursday’s breakout above the 4,000 level. On Wednesday the market bounced from the 3,900 level and on Friday it reached the local high of 4,076.81. It remains well below the August 16 local high of 4,325.28.
This morning the S&P 500 index is expected to open 0.5% higher, so the uptrend will likely extend. Investors will be waiting for tomorrow’s important Consumer Price Index release. We may see a short-term profit-taking action at some point.
Futures Contract Trades Along 4,100
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading slightly above the 4,100 level right now. The market keeps extending its uptrend, however, there may be a consolidation or correction following the recent rally.
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 open higher this morning, as global stock markets gained after the weekend. We will likely see a consolidation following last week’s rally. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 is expected to open higher again; stocks trade within a short-term uptrend.
- 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
