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).
Stock prices went sideways on Friday – will they resume the uptrend?
The S&P 500 index gained 0.03% on Friday as it fluctuated following its Thursday’s retreat of 0.7%. The market bounced down from the Wednesday’s new medium-term high of 4,578.43. Recently stocks were gaining ahead of quarterly earnings releases, among other factors. On Wednesday the S&P 500 was the highest since early April of 2022. 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 and the important FOMC release on Wednesday.
Stocks are expected to open 0.1% higher this morning. So the S&P 500 will likely further extend its short-term fluctuations. The market broke below its short-term upward trend line as we can see on the daily chart:
Futures Contract Trades Along 4,570
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 on Thursday it retreated to around 4,560. The nearest important support level remains at 4,560, marked by the previous resistance level.
Conclusion
The S&P 500 will likely extend its short-term consolidation this morning. There have been no confirmed negative signals so far. For now, it looks like a flat correction within an uptrend.
Here’s the breakdown:
- The S&P 500 keeps fluctuating ahead of quarterly earnings, Wednesday’s FOMC.
- 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
