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 extended their rally yesterday – will S&P 500 continue higher?
The S&P 500 index gained 0.94% on Thursday as it broke above the May 1 local high and the 4,.200 level. Early in the week stock prices went sideways following last Wednesday’s CPI and Thursday’s PPI releases. Last week on Thursday May 4 the S&P 500 fell to the local low of 4,048.28, but it quickly got back to around 4,150.
Stocks will likely open 0.4% higher this morning. So the S&P 500 is expected to extend its advance after breaking above the important 4,200 level. The market reached new medium-term high as we can see on the daily chart:
Futures Contract Trades Above 4,200
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading above the previous local highs. The support level is now at 4,180-4,200, marked by the recent resistance level.
Conclusion
Stocks will likely extend their yesterday’s rally this morning. However, the market may see a profit-taking action at some point. There may be a volatility following the Fed Chair Powell’s speech at 11:00 a.m. The stock market extends its uptrend from the mid-March local low.
Here’s the breakdown:
- The S&P 500 broke above the 4,200 level yesterday.
- There have been no confirmed negative signals so far.
- 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
