Stocks Accelerate Their Uptrend – Is It Still Bullish?

Paul-Rejczak Paul Rejczak Jun 13, 2023

S&P 500 accelerated its uptrend once again – is it overbought?

The S&P 500 index gained 0.93% on Monday as it broke above the 4,300 level following its Friday’s intraday pullback. The daily high was at 4,340.13 yesterday and it was the highest since April of 2022.

There is still a lot of uncertainty concerning monetary policy, the coming economic data releases including today’s CPI and tomorrow’s FOMC, some technology stocks’ valuation concerns, but overall, the investors’ sentiment is still bullish.

The broad stock market index is expected to open 0.4% higher following the Consumer Price Index release. The CPI number was at +4.0% vs. the expected +4.1% y/y. S&P 500 is trading above a month-long upward trend line as we can see on the daily chart:

Stocks Accelerate Their Uptrend – Is It Still Bullish? - Image 1

Futures Contract Trades Along 4,400

Let’s take a look at the hourly chart of the S&P 500 futures contract. It broke slightly above the 4,400 level this morning. The support level remains at around 4,350, among others.

Stocks Accelerate Their Uptrend – Is It Still Bullish? - Image 2

Conclusion

The S&P 500 is expected to open higher this morning, so the market will reach new medium-term high. The sentiment is bullish after the CPI number release. Investors will be waiting for tomorrow’s FOMC Rate Decision, among others. There have been no confirmed negative signals so far.

Here’s the breakdown:

  • The S&P 500 will likely extend its uptrend ahead of tomorrow’s Fed Rate Decision release.
  • There have been no confirmed negative signals so far.
  • In my opinion, the short-term outlook is bullish.

Thank you.

Paul Rejczak,
Stock Trading Strategist