The S&P 500 index remained close to its local high on Monday – will the uptrend continue?
The broad stock market index gained 0.33% on Monday following its Friday’s decline of 0.2% as it extended a short-term consolidation along the Friday’s new medium-term high of 4,163.19. The index keeps advancing from its March 13 local low of 3,909.16. Last week it rallied ahead of the coming quarterly earnings releases, among other factors.
The S&P 500 will likely open 0.5% higher this morning. The market is reacting to some better-than-expected earnings releases. The index continues to trade within its early February topping pattern, and below the important resistance level of 4,200 as we can see on the daily chart:
Futures Contract Is at New High
Let’s take a look at the hourly chart of the S&P 500 futures contract. It’s trading closer to the 4,200 resistance level this morning. On the other hand, the support level remains at 4,150, among others. The market continues to trade above its upward trend line.
Conclusion
Stocks are about to open higher this morning, as investors will likely react to better-than-expected quarterly earnings releases. Today after the session’s close we will get a report from NFLX, and tomorrow from TSLA, among others. There have been no confirmed negative signals so far. However, we may see a profit-taking action at some point.
Here’s the breakdown:
- The S&P 500 continues to trade along the new medium-term high.
- There have been no confirmed negative signals.
- In my opinion, the short-term outlook is still bullish.
Thank you.
Paul Rejczak,
Stock Trading Strategist