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).
The S&P 500 will extend the uptrend today – are long positions still justified?
The broad stock market index lost 0.02% on Thursday as it went sideways following the important FOMC monetary policy release, quarterly earnings announcements. Yesterday it reached new medium-term high of 4,582.47.
There is still a lot of uncertainty concerning monetary policy, some technology/AI stocks’ valuation concerns, but the investors’ sentiment remains bullish. The market is waiting for more quarterly corporate earnings releases.
Stocks will likely open 0.8% higher following yesterday’s META earnings release, among other factors. So the S&P 500 will break above the 4,600 level. It is still trading way above almost two-month-long upward trend line as we can see on the daily chart:
Futures Contract Trades Above Recent Highs
Let’s take a look at the hourly chart of the S&P 500 futures contract. Recently it rallied above the 4,600 level and then it retreated to around 4,560. This morning the market is breaking higher. The support level is now at 4,600-4,610, marked by the recent highs.
Conclusion
The S&P 500 is expected to open higher this morning. Investors will be waiting for more quarterly earnings releases. There have been no confirmed negative signals so far. For now, it looks like a relatively flat correction within an uptrend.
Here’s the breakdown:
- The S&P 500 is about to break above the 4,600 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
