S&P 500 below 4,000 again – Time to be bearish?
|Stock Prices pulled back and the S&P 500 went below the 4,000 level again. Is this a downward reversal?
The S&P 500 index lost 1.54% on Monday, as the broad stock market retraced most of its last week’s advances on a renewed interest rates’ uncertainty, among other factors. On Friday the index reached a local high of 4,034.02, and yesterday it went back below the 4,000 level. Stock prices have been fluctuating since November 10 rally.
This morning the S&P 500 is expected to open 0.1% higher, so we may see some more short-term uncertainty. The index went below the 4,000 level, but it continues to trade above an over month-long upward trend line, as we can see on the daily chart.
Futures contract trades below 4,000
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading below the 4,000 level this morning. It still looks like a consolidation within an uptrend, as there have been no confirmed negative signals so far.
Conclusion
Stocks will likely open slightly higher this morning. The market may retrace some of its yesterday’s decline of 1.5%. There have been no confirmed negative signals so far. It looks like a correction or a consolidation within an uptrend. Investors will be waiting for the important CB Consumer Confidence release at 10:00 a.m.
Here’s the breakdown:
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The S&P 500 index pulled back below the 4,000 level yesterday.
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It still looks like a consolidation or a relatively flat correction within an uptrend.
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