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 went the lowest since late March, but will downtrend continue?
The S&P 500 index lost 0.38% on Wednesday as it slightly extended its Tuesday’s decline of 1.6%. The daily low was at 4,049.35. The market was the lowest since March 30. Last week on Tuesday the index reached new medium-term high of 4,169.48. Recently it kept advancing from its March 13 local low of 3,909.16.
Stocks will likely open 0.6% higher after a worse-than-expected Advance GDP release. So the index will retrace its yesterday’s decline. On Tuesday the index broke below the recent trading range as we can see on the daily chart:
Futures Contract Trades Along 4,100
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading along the 4,100 level this morning. The resistance level remains at around 4,120 and the support level is at 4,080, among others.
Conclusion
The S&P 500 index is expected to open higher this morning. The broad stock market will likely retrace some of its Tuesday’s-Wednesday’s decline today. The market will be waiting for more earnings releases. Today after hours we will get reports from AMZN and INTC, among others.
Here’s the breakdown:
- The S&P 500 will likely fluctuate following its recent declines.
- It looks like a downward correction within an over month-long advance.
- 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
