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 continued to trade within a short-term consolidation on Thursday, as the S&P 500 index was close to the 4,400 level. Will the market break below the trading range?

Today’s Stock Trading Alert will be very short. We apologize for the inconvenience.

The S&P 500 index is expected to open 0.3% lower this morning and we may see some short-term volatility following long holiday weekend. There’ s still a lot of uncertainty concerning the Ukraine conflict and Fed’s monetary policy tightening plans.

Let’s take a look at the hourly chart of the S&P 500 futures contract. It is still trading along the short-term downward trend line following Wednesday’s failed breakout.

Recently, we closed a speculative long position with a gain of 100 points and we are waiting for another profit opportunity. (chart by courtesy of http://tradingview.com):

Conclusion

The S&P 500 index is expected to open 0.3% lower this morning and it will likely break slightly below its recent trading range. However, we may see a rebound later in the day.

Here’s the breakdown:

• The S&P 500 index is likely to open slightly below its last week’s consolidation.
• 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