S&P 500 Approaches 4,000 Mark – Will Uptrend Continue?
2023.01.12 13:29
- 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.
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