Trading position (short-term, my opinion; S&P 500 futures contract): In my opinion, the short-term outlook is neutral and no positions are currently justified from the risk/reward point of view.
Stocks retraced their recent advance – was it just a correction?
The S&P 500 index lost 1.30% on Monday, as it retraced its Thursday’s-Friday’s rally ahead of this week’s important economic data releases, among other factors. Last week the index extended its bounce from January 19 local low of 3,885.54 and it retraced most of the December’s decline.
Stocks will likely open 0.3% higher this morning following quarterly earnings releases. The markets will be waiting for tomorrow’s Fed release and more important earnings releases. On Friday the S&P 500 bounced from the 4,100 resistance level, as we can see on the daily chart:
Futures Contract – Downward Correction
Let’s take a look at the hourly chart of the S&P 500 futures contract. It retraced some of its recent advance after bouncing from the 4,100 level on Friday. The resistance level remains at 4,100, and the support level is now at 4,000 among others.
Conclusion
The S&P 500 is expected to open 0.3% higher this morning. So it will likely remain above the 4,000 level. For now, it looks like a retracement within a short-term uptrend. The markets will be waiting for the important Fed’s release tomorrow and more quarterly corporate earnings reports.
Here’s the breakdown:
- The S&P 500 index went close to the 4,000 level again.
- Investors will be waiting for earnings, tomorrow’s Fed’s rate decision.
- In my opinion, the short-term outlook is neutral and no positions are justified from the risk/reward point of view.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, my opinion; S&P 500 futures contract): In my opinion, the short-term outlook is neutral and 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
