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 before session’s open).
The S&P 500 continues sideways – is this still a consolidation within an uptrend?
The broad stock market index gained 0.16% on Monday, as it fluctuated following Friday’s rebound. The S&P 500 continues to trade within a consolidation below the 4,000 level. On Wednesday the daily high was at 4,039.40 as the index was the highest since March 7. Friday’s daily low was at 3,909.16, and yesterday the market bounced down from the 4,000 level again.
The S&P 500 index will likely open 0.2% lower this morning so it may see more short-term uncertainty. The market is still relatively close to the 4,000 level as we can see on the daily chart:
Futures Contract Is Still Going Sideways
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading along the 4,000 after last week’s Wednesday’s Fed’s release. The resistance level is at around 4,050-4,100 and the support level is at 3,950.
Conclusion
Stocks are expected to open slightly lower this morning. The market will be waiting for the CB Consumer Confidence release at 10:00 a.m. Stocks extend their consolidation. It still looks like a flat correction within an uptrend.
Here’s the breakdown:
- Stocks are about to extend their fluctuations following last week’s Fed, banking crisis.
- The S&P 500 remains below the 4,000 resistance level.
- In my opinion, the short-term outlook is bullish and long positions are 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
