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 backed off its new high, is the uptrend over?
The S&P 500 index lost 0.10% on Friday as it fluctuated following the recent rally. The broad stock market’s gauge closed a few points above the 4,500 level after retreating from new medium-term high of 4,527.76. On Friday it was the highest since early 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 will likely open 0.2% lower this morning so it may see more short-term uncertainty after rallying to new medium-term highs last week. The market remains above an over month-long upward trend line as we can see on the daily chart:
Futures Contract Remains Above 4,500
Let’s take a look at the hourly chart of the S&P 500 futures contract. It’s trading along the 4,530 level this morning. The market retreated from the 4,560 level. The nearest important support level remains at around 4,500-4,520.
Conclusion
Stocks are expected to open slightly lower this morning. The S&P 500 index may extend its fluctuations following its recent rally. Investors will be 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 continues to trade above the 4,500 level.
- 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
