S&P 500 Approaches 4,000 Mark – Will Uptrend Continue?
2023.01.12 13:29
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- The S&P 500 index is expected to fluctuate following the consumer inflation data release.
- Stock prices broke above their recent trading range, which is bullish.
- In my opinion, the short-term outlook is bullish and long positions are justified from the risk/reward point of view.
The gained 1.28% on Wednesday, extending its uptrend after Monday’s uncertainty and a retracement below the 3,900 level. Recently the broad stock market broke above its three-week-long trading range. It retraced some of its mid-December decline.
The broad stock market’s gauge will likely open 0.4% higher this morning following the number release. The data was as expected, so we’ll likely see more short-term uncertainty. The index got closer to the 4,000 level, as we can see on the daily chart:
Futures Contract Remains Close to 4,000
Let’s take a look at the hourly chart of the S&P 500 futures contract. It fluctuates following the Consumer Price Index release. The market remained close to the 4,000 level. It continues to trade within a short-term uptrend, and the nearest important resistance level is at 4,000-4,050.
Conclusion
The S&P 500 index will likely open 0.4% higher, and it may see an attempt at breaking above the 4,000 level. Investors will now wait for the quarterly earnings releases season. Tomorrow before open, we will have reports from the banking sector.
Disclaimer: The information above represents analyses and opinions of Paul Rejczak & Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Paul Rejczak and his associates cannot guarantee the reported data’s accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Rejczak is not a Registered Securities Advisor. By reading his 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. Paul Rejczak, Sunshine Profits’ employees, affiliates as well as their family members 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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