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).
S&P 500 extended its short-term fluctuations – is it forming a bottom?
The S&P 500 index gained 0.73% on Tuesday as it went slightly above Monday’s daily high. On Monday the market lost 0.2% after an intraday downward reversal. It 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 will likely open 0.4% lower today due to yesterday’s quarterly earnings releases. On Monday the S&P 500 bounced from the 4,200 level as we can see on the daily chart:
Futures Contract Remains Close to 4,250
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning 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 at around 4,200-4,220.
Conclusion
The S&P 500 will likely extend its short-term consolidation this morning. Investors continue to react to quarterly earnings releases, among other factors. Today after the session’s close we will get the release from META, among others. The index may see a rebound or an upward correction following recent declines at some point.
Here’s the breakdown:
- Stock prices will likely extend their fluctuations; for now it looks like consolidation within a downtrend.
- The S&P 500 managed to stay above the important 4,200 level.
- 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
