Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): No positions are currently justified from the risk/reward point of view.
Stocks went sideways on Monday, as the S&P 500 remained below the 4,000 level. Will the uptrend continue ahead of the important quarterly earnings releases, tomorrow’s Fed decision?
The S&P 500 index gained 0.13% on Monday, following its Friday’s decline of 0.9%. On Friday the index reached a local high of 4,012.44, before getting back below the 4,000 level. Last week stocks extended their short-term advance despite the ongoing worries about inflation, tightening Fed’s monetary policy, and Russia-Ukraine conflict. But on Friday the market retraced some of the advance. This morning the S&P 500 is expected to open 0.3% lower and we may see some further uncertainty and a consolidation below the resistance level of 4,000.
Futures Contract – More Fluctuations
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading below the 4,000 level. For now, it looks like a consolidation or a correction within an uptrend.
In our opinion, no positions are currently justified from the risk/reward point of view. (chart by courtesy of http://tradingview.com):
Conclusion
This morning the S&P 500 index will likely open 0.3% lower, as it may extend its short-term fluctuations ahead of the Consumer Confidence number release at 10:00 a.m. and quarterly earnings releases from GOOG and MSFT after the session’s close. Tomorrow we will get the important FOMC monetary policy release and the earnings release from META, and on Thursday we will get the releases from AAPL and AMZN, plus the important Advance GDP release.
Here’s the breakdown:
- The S&P 500 will likely extend its short-term consolidation this morning; investors will wait for series of important data releases this week.
- In our opinion, no positions are currently justified from the risk/reward point of view.
As always, we’ll keep you, our subscribers, well-informed.
Trading position (short-term, our opinion; levels for S&P 500 continuous futures contract): No positions are currently justified from the risk/reward point of view.
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
