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).
Stocks extended their rally once again – are they getting closer to temporary highs?
The S&P 500 index gained 0.85% on Thursday, as it broke above the 4,500 level following its Wednesday’s gain of 0.7%. The broad stock market index reached new medium-term high of 4,517.38 yesterday and it was the highest since April of 2022.
There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but the investors’ sentiment remains bullish. The market is waiting for quarterly corporate earnings releases.
The S&P 500 is expected to open 0.1% higher this morning. So there may be a consolidation following recent advances. The market remains above an over month-long upward trend line as we can see on the daily chart:
Futures Contract Is Close to 4,550
Let’s take a look at the hourly chart of the S&P 500 futures contract. On Wednesday it broke above the 4,500 level and this morning it’s trading along new medium-term high and slightly above the 4,550 level. The nearest important support level is now at around 4,500-4,520.
Conclusion
The S&P 500 index will open virtually flat today. So the market may fluctuate following the recent rally. Investors will be also waiting for the coming quarterly corporate earnings releases.
There have been no confirmed negative signals so far. However, the market may see a more pronounced profit taking action at some point.
Here’s the breakdown:
- The S&P 500 trades above the 4,500 level after rallying on CPI data.
- There have been no confirmed negative signals.
- In my opinion, the short-term outlook is 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
