-
S&P 500 is Closer to 4,500 Level Again – Is the Correction Over?
April 20, 2022, 9:00 AMAvailable to premium subscribers only.
-
Stocks: Short-Term Uncertainty Ahead of Quarterly Earnings Releases
April 19, 2022, 8:59 AMAvailable to premium subscribers only.
-
S&P 500 Likely to Open Lower, but Downside Seems Limited
April 18, 2022, 9:05 AMAvailable to premium subscribers only.
-
Stocks Prices Fluctuate – Is This a Short-Term Bottom?
April 14, 2022, 8:53 AMAvailable to premium subscribers only.
-
Stocks – Uncertainty Ahead of Quarterly Earnings Season
April 13, 2022, 9:13 AMStocks fluctuated following their recent decline on Tuesday and the S&P 500 index closed slightly below the 4,400 level. Is this still just a downward correction?
The S&P 500 index lost 0.34% on Tuesday following its Monday’s decline of 1.7%. There is still a lot of uncertainty concerning the Ukraine conflict and Fed’s monetary policy tightening plans. On Monday it led to a more pronounced profit-taking action. However, the coming quarterly earnings releases season may be a positive factor in the near term. This morning the broad stock market is expected virtually flat following the Producer Price Index release.
The nearest important resistance level is now at around 4,475-4,500, marked by the recent support level and Monday’s daily gap down. On the other hand, the support level is at 4,350-4,400. The S&P 500 index retraced more of its March rally, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):
Futures Contract – Short-Term Consolidation
Let’s take a look at the hourly chart of the S&P 500 futures contract. Recently it broke below the 4,400 level and our profitable long position was closed at the stop-loss (take-profit) level of 4,440. Overall, we gained 100 points on that trade in a little less than two months’ time (it was opened on Feb. 22 at 4,340 level). So now we will wait for another profit opportunity. (chart by courtesy of http://tradingview.com):
Conclusion
The S&P 500 index is expected to open 0.1% lower following the producer inflation number release. Stocks will likely extend their consolidation. For now it looks like a relatively flat correction within a short-term downtrend.
Here’s the breakdown:
- The S&P 500 index trades within a short-term consolidation following the recent declines.
- Our profitable long position was closed at the 4,440 level (a gain of 100 points from the Feb. 22 opening).
Today's premium Stock Trading Alert includes details of our trading position. Interested in more exclusive updates? Join our premium Stock Trading Alerts newsletter and read all the details today.
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
Free Gold &
Stock Market Newsletter
with details not available
to 99% investors
+ 7 days of Gold Alerts
Gold Alerts
More-
Status
New 2024 Lows in Miners, New Highs in The USD Index
January 17, 2024, 12:19 PM -
Status
Soaring USD is SO Unsurprising – And SO Full of Implications
January 16, 2024, 8:40 AM -
Status
Rare Opportunity in Rare Earth Minerals?
January 15, 2024, 2:06 PM