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 before session’s open).
The S&P 500 broke above 4,000 again – will the uptrend continue?
The broad stock market index gained 1.42% on Wednesday as it broke above the 4,000 level. The S&P 500 closed the highest since March 7 despite the overall uncertainty following banking crisis, Fed’s interest rate hike. The index keeps advancing from its last Friday’s local low of 3,909.16.
Stocks will likely open 0.6% higher this morning, so the index will accelerate its yesterday’s rally. The market will retrace more of its early March decline as we can see on the daily chart:
Futures Contract Is Closer to 4,100
Let’s take a look at the hourly chart of the S&P 500 futures contract. It continues higher after bouncing from the 3,980-4,000 support level yesterday. On the other hand, the resistance level is now at around 4,100.
Conclusion
Stocks are expected to open higher this morning and the S&P 500 will likely break above its last week’s local high. There have been no confirmed negative signals so far. However, there are some short-term overbought conditions. The recent consolidation was likely just a flat correction within an uptrend.
Here’s the breakdown:
- Stocks will extend their yesterday’s advance this morning.
- The S&P 500 may get closer to its early March high; it may retrace a part of the advance at some point.
- In my opinion, the short-term outlook is bullish and long positions are 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 before session’s open).
Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
