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).
Stock prices extend their short-term consolidation, S&P 500 remains slightly below 4,400.
The S&P 500 index gained 0.10% on Wednesday as it continued to fluctuate following last week’s advances. The daily high was at 4,391.20 yesterday, so the market got even closer to mid-October local high of around 4,394. Investors’ sentiment remains positive despite a lot of uncertainty about monetary policy, economic growth and geopolitics. Last week the index rallied from October 27 local low of 4,103.78.
Stocks will likely open 0.3% higher today, so the market will further extend its consolidation along the local highs. The S&P 500 gets closer to 4,400 level as we can see on the daily chart:
Futures Contract Trades Above 4,400
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading above the 4,400 level. The resistance level is now at 4,420 and support level is at 4,380, among others.
Conclusion
The S&P 500 index is expected to open along its yesterday’s daily high, so there may be an attempt at breaking above that resistance level. Last Friday the investors’ sentiment improved following worse than expected jobs data, but this week the market is basically going sideways to slightly higher. The index may see a consolidation or a downward correction at some point.
Here’s the breakdown:
- The S&P 500 is trading even closer to 4,400.
- The market trades within a consolidation following last week’s rally.
- 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
