S&P 500 at New Medium-Term Highs – Is Correction Coming?
The S&P 500 accelerated its rally yesterday – will it continue even higher?
The broad stock market index gained 1.22% on Thursday as it further extended its uptrend after breaking above the previous local highs two weeks ago. The S&P 500 was the highest since April of 2022 again.
There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but overall, the investors’ sentiment is still bullish.
Stocks will likely open 0.2% higher this morning as investors’ sentiment remains bullish ahead of a long holiday weekend. The S&P 500 is trading above its month-long upward trend line and above a steeper short-term trend line as we can see on the daily chart:
Futures Contract Trades Along New High
Let’s take a look at the hourly chart of the S&P 500 futures contract. It rallied up to around 4,485 level yesterday. Today it’s trading within a short-term consolidation. The resistance level is now at 4,500 and the support level is at 4,440, among others.
The S&P 500 index will likely open higher this morning. The market may fluctuate following its recent rally. There have been no confirmed negative signals so far. However, stocks may see a profit-taking action at some point.
Here’s the breakdown:
- The S&P 500 extended its rally as it broke above the 4,400 level yesterday.
- There have been no confirmed negative signals so far.
- In my opinion, the short-term outlook is bullish.
Stock Trading Strategist