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.

Stock prices fluctuated last week. On Thursday the market went sideways following its Tuesday’s sell-off. Today it will likely open lower, but we may see another intraday rebound.

The S&P 500 index gained 1.06% on Friday, as it retraced its Thursday’s decline of 0.9%. The broad stock market fluctuated ahead of the long holiday weekend. This morning the S&P 500 index will likely open 1.0% lower following global stock markets’ rout and the strengthening U.S. dollar.

There’s still a lot of uncertainty and worries about inflation data, tightening Fed’s monetary policy, Russia-Ukraine conflict and the coming quarterly earnings releases season.

Futures Contract Is Below 3,800 Level Again

Let’s take a look at the hourly chart of the S&P 500 futures contract. It continues to fluctuate along the 3,800 level. The support level is at around 3,750, and the short-term resistance level remains at 3,850.

In our opinion, no positions are currently justified from the risk/reward point of view. (chart by courtesy of http://tradingview.com):

Conclusion

The S&P 500 index is expected to open around 1.0% lower this morning following yesterday’s rebound and an overnight decline. We may see more fluctuations following the recent retreat from local highs of around 3,950. It still looks like a further consolidation after the early June declines from the 4,100-4,200 level.

Here’s the breakdown:

• The S&P 500 index is expected to open lower on strengthening U.S. dollar, global stock markets’ decline; we may see an intraday rebound at some point.
• 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