On Friday the S&P 500 was the highest since mid-December – will the short-term uptrend continue?
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The broad stock market is expected to open 0.5% higher this morning, so stock prices will likely extend their short-term advance. There may be a selling pressure and some profit-taking action as the market gets closer to the resistance level of around 3,920-3,930, marked by the previous local lows, as we can see on the daily chart:
Futures Contract Trades Along 3,930
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is slightly extending a short-term advance this morning after breaking above the 3,900 level. The next resistance level is at 3,950-4,000, among others.
Conclusion
Stock prices are expected to extend their Friday’s gains this morning. We may see a profit-taking action at some point, however, the market broke above its recent trading range and it looks bullish in the short-term.
Investors will be waiting for tomorrow’s Fed Chief Powell’s speech, the Consumer Price Index release on Thursday and a coming quarterly corporate earnings season. We will have reports from the banking sector on Friday before open.
Here’s the breakdown:
- The S&P 500 index will likely extend its Friday’s advance this morning.
- Stock prices broke above its recent trading range, which is bullish.
- In my opinion, the short-term outlook is bullish.
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Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
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