Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): long positions with entry at 4,340 price level, with 4,440 as the stop-loss (take profit) and 4,740 as the price target.
Stocks are trading within a short-term consolidation following the recent advances. Is this a reversal pattern or just a flat correction before another leg up?
The S&P 500 index lost 0.63% on Wednesday, as it retraced some of its Tuesday ‘s advance of 1.2%. The broad stock market fluctuated following the recent run-up. There’s still a lot of geopolitical uncertainty, but investors kept jumping back into stocks. This morning the index is expected to open 0.1% higher and we may see some short-term fluctuations.
Futures Contract Is at the Trend Line
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading at the short-term upward trend line and along the 4,600 level. We can see some technical overbought conditions, however, there have been no confirmed negative signals so far.
We are maintaining our profitable long position from the 4,340 level. (chart by courtesy of http://tradingview.com):
Conclusion
The S&P 500 index will likely open virtually flat this morning. There have been no confirmed negative signals so far. However, there are some clear technical overbought conditions that may lead to a correction. The market will be waiting for tomorrow’s monthly jobs data release.
Here’s the breakdown:
- The S&P 500 index trades within a short-term consolidation; for now it looks like a flat correction within an uptrend.
- We are maintaining our profitable long position (opened on Feb. 22 at 4,340).
- We are still expecting some upside from the current levels; however, it is time to get more cautious as there may be a downward correction at some point.
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 4,440 as the stop-loss (take profit) and 4,740 as the price target.
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
