S&P 500 Likely to Open Higher Today
2023.08.10 10:51
- The S&P 500 continues to trade along the 4,500 level after bouncing off the recent high of around 4,607.
- In my opinion, the short-term outlook is still bullish.
The index lost 0.70% on Wednesday as it retraced Tuesday’s intraday advance after bouncing from the 4,500 level. The market reached a new local low of 4,461.33 yesterday. It was 145.7 points or 3.16% below its July 27 medium-term high of 4,607.07.
There is still a lot of uncertainty concerning monetary policy and some technology/AI stocks’ valuation concerns, but investors’ sentiment remains bullish.
Stocks will likely open 0.3% higher today. Recently the S&P 500 broke below a two-month-long upward trend line last week, as we can see on the daily chart:
Futures Contract Remains Above 4,500
Let’s take a look at the hourly chart of the contract. It continues to trade along the 4,500 level. The nearest important support level is at 4,480, and the resistance level remains at 4,540-4,550, among others.
Conclusion
The S&P 500 will likely extend its consolidation following consumer inflation data. It still looks like a correction within an uptrend. However, the market may see some more uncertainty.
