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 is at 4,500 – will the uptrend resume?
The S&P 500 index lost 0.25% on Thursday as it slightly extended its Wednesday’s decline of 1.4%. Early in the week it fluctuated following last week’s Thursday’s-Friday’s volatility. Yesterday the index reached new local low of 4,485.54 as investors awaited quarterly earnings releases from AAPL and AMZN and today’s monthly jobs data release.
Last week on Thursday the market reached new medium-term high of 4,607.07. It was the highest since March of 2022. There is still a lot of uncertainty concerning monetary policy, some technology/AI stocks’ valuation concerns, but the investors’ sentiment remains bullish.
Stocks are expected to open 0.2% higher today. The market may go sideways again following mixed monthly jobs data release and yesterday’s quarterly earnings announcements. The index is at a two-month-long upward trend line yesterday 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 fluctuating above the 4,500 level. Yesterday’s daily low was at around 4,506. The support level is at 4,500-4,505 and the resistance level is at 4,540-4,550, among others.
Conclusion
The S&P 500 index will likely extend its short-term consolidation following the recent declines. It still looks like a correction within an uptrend, however, if the index breaks below 4,500 it may see more selling pressure.
Here’s the breakdown:
- The S&P 500 remains close to the 4,500 level after bouncing down from the recent high of around 4,607.
- In my opinion, the short-term outlook is still 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
