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).
S&P 500 went even higher yesterday – was it a local high?
The S&P 500 index gained 0.24% on Wednesday as it further extended a short-term uptrend. Stock prices were gaining ahead of quarterly earnings releases, among other factors. The daily high was at 4,578.43 and the S&P 500 was the highest since early April of 2022. There is still a lot of uncertainty concerning monetary policy, some technology/AI stocks’ valuation concerns, but the investors’ sentiment remains bullish. The market is waiting for more quarterly corporate earnings releases.
Stocks will likely open 0.2% lower this morning. The market is still way above an over month-long upward trend line as we can see on the daily chart:
Futures Contract Bounced From 4,600
Let’s take a look at the hourly chart of the S&P 500 futures contract. It rallied above the 4,600 level yesterday but this morning it’s trading lower. The nearest important support level remains at 4,560, marked by the recent resistance level.
Conclusion
The S&P 500 will likely open lower this morning. Investors are waiting for more quarterly corporate earnings releases. Yesterday we got reports from TSLA and NFLX and these stocks are expected to open lower today.
There have been no confirmed negative signals so far. However, the market may see a more pronounced profit taking action at some point.
Here’s the breakdown:
- The S&P 500 extended its uptrend once again, but there’s more uncertainty amid quarterly earnings.
- There have been no confirmed negative signals.
- 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
