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 sold off once again on Monday, as the S&P 500 index lost almost 3%. Will it break the late February low?
The S&P 500 index lost 2.95% on Monday after breaking below the 4,300 level. The broad stock market’s gauge tanked on more headlines about the ongoing Ukraine situation. It fell to the daily low of 4,199.85. On Feb. 24 the index fall to the local low of 4,114.65 and it was 704 points or 14.6% below the January 4 record high of 4,818.62. There’s still a lot of uncertainty concerning the ongoing Ukraine conflict. This morning the S&P 500 index is expected to open 0.1% higher after an overnight rebound.
The nearest important resistance level is now at 4,350 and the next resistance level is at 4,400. On the other hand, the support level is at 4,150-4,200, among others. The S&P 500 index came back to its recently broken downward trend line, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):
Futures Contract Breaks Below the Consolidation
Let’s take a look at the hourly chart of the S&P 500 futures contract. It broke below the short-term consolidation before retracing some of the late February rebound.
We are still maintaining our long position from the 4,340 level, as we are expecting an upward correction from the current levels (chart by courtesy of http://tradingview.com):
Conclusion
The S&P 500 index is expected to open 0.1% higher this morning and we may see an attempt at retracing some of yesterday’s sell-off. We may see more short-term news-driven volatility.
Here’s the breakdown:
- The S&P 500 index broke below its short-term consolidation; it came back to the 4,200 level.
- We are maintaining our long position (opened on Feb. 22 at 4,340)
- We are expecting an upward correction 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
