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 – will the S&P 500 reach 4,400 level?
The S&P 500 index gained 0.69% on Tuesday following its Monday’s gain of 0.9% as it reached new medium-term high following the recent breakout above the 4,300 level. The daily high was at 4,375.37 and it was the highest since April of 2022.
There is still a lot of uncertainty concerning monetary policy, the coming economic data releases including today’s FOMC, some technology stocks’ valuation concerns, but overall, the investors’ sentiment is still bullish.
The S&P 500 will likely open 0.1% higher this morning. The market will be waiting for the Fed’s Interest Rate Decision release at 2:00 p.m. and the Fed’s Press Conference at 2:30 p.m. S&P 500 is trading above a month-long upward trend line 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. It continues to trade above the 4,400 level. The support level is also at around 4,350.
Conclusion
The S&P 500 index will likely fluctuate following its Monday’s-Tuesday’s rally this morning. There will be a volatility following today’s FOMC release at 2:00 p.m. There have been no confirmed negative signals so far, however, the market may see a profit-taking action at some point.
Here’s the breakdown:
- The S&P 500 is the highest since April of 2022 as investors await the Fed’s monetary policy release.
- There have been no confirmed negative signals so far.
- 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
