The S&P 500 index gained 0.38% yesterday as it extended its Tuesday’s advance of 1.5%. The market is gaining following worse than economic data amidst reduced pressure for the further monetary policy tightening. On Friday the index bounced from the daily low of around 4,356 despite a hawkish speech from the Fed Chair Powell and recently it has been selling off on strengthening U.S. dollar, among other factors.
Stocks will likely open 0.2% higher this morning, so the S&P 500 will remain above the 4,500 level. On Tuesday it broke above an over month-long downward trend line as we can see on the daily chart:
Futures contract extends its advance
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading along the 4,530 level. The nearest important level of resistance is at around 4,540-4,550, marked by the previous local highs.
Conclusion
The S&P 500 index rallied on Tuesday and yesterday it broke above the 4,500 level. Investors’ sentiment improves as the pressure for further monetary policy tightening is somewhat easing. So has the market reversed its downtrend? For now it looks like an advance within a medium-term consolidation following a first half of the year rally. The markets will be waiting for tomorrow’s monthly jobs data release.
Here’s the breakdown
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Stock prices retraced more of their recent declines.
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The S&P 500 broke above the 4,500 level, but it may face some uncertainty ahead of tomorrow’s jobs data.
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In my opinion, the short-term outlook is still bullish.
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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