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).
S&P 500 reached new medium-term high – will the uptrend continue?
The S&P 500 index was virtually flat yesterday after retracing all of its intraday rally. The market went the highest since August of 2022 on technology stocks rally, debt ceiling deal. The daily high was at 4,231.10 and the index closed slightly above the 4,200 level. Last week stock prices were going down amid short-term profit-taking action caused by the debt ceiling deal fears.
Stocks are expected to open 0.5% lower this morning, so they will likely extend their yesterday’s intraday correction. The S&P 500 remains close to its early February medium-term high as we can see on the daily chart:
Futures Contract Trades Below 4,200
Let’s take a look at the hourly chart of the S&P 500 futures contract. The market bounced from 4,240 level and this morning it’s trading along the support level of 4,200. The next support level is at 4,180, among others.
Conclusion
The S&P 500 will likely open lower today, so it is about to extend its yesterday’s intraday decline. For now it looks like a downward correction. However, the market may see more short-term profit-taking action following a quick downward reversal.
Here’s the breakdown:
- The S&P 500 retraced its yesterday’s intraday rally.
- Stock market may further extend their medium-term consolidation.
- 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
