S&P 500 Reached Yet Another New Local High, but Reversal May Be In Sight
March 30, 2022 (Investorideas.com Newswire) The S&P 500 index extended its uptrend once again after breaking above the 4,600 level. However, today we will likely see some profit-taking action.
The broad stock market index gained 1.23% on Tuesday following its Monday's gain of 0.7%. Stocks extended their uptrend on a potential Ukraine conflict ceasefire news yesterday. There's still a lot of geopolitical uncertainty, but investors keep on jumping back into stocks. This morning the index is expected to open 0.3% lower and we may see some short-term profit-taking action.
The nearest important resistance level is now at around 4,650-4,700. On the other hand, the support level is at 4,550-4,600, marked by the recent resistance level. The S&P 500 index broke above its January-February local highs along the 4,600 level, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):
Futures Contract Remains Above its Upward Trend Line
Let's take a look at the hourly chart of the S&P 500 futures contract. It is trading above the short-term upward trend line and above the 4,600 level. We can see some technical overbought conditions, however, there have been no confirmed negative signals so far.
We are maintaining our profitable long position from the 4,340 level. (our premium Stock Trading Alert includes details of our trading position along with the stop-loss and profit target levels) (chart by courtesy of http://tradingview.com):
The S&P 500 index will likely open 0.3% lower this morning and we may see some short-term profit-taking action. There have been no confirmed negative signals so far. However, there are some clear technical overbought conditions that may lead to a correction.
The market will be waiting for Friday's monthly jobs data release. This morning we've got the ADP Non-Farm Employment Change release and it was as expected.
Here's the breakdown:
- The S&P 500 index further extended its uptrend yesterday, but in the near-term some profit-taking action seems likely.
- We are maintaining our profitable long position (opened on Feb. 22 at 4,340).
- We are still expecting some upside from the current levels; however, it is time to get more cautious as there may be a downward correction at some point.
Like what you've read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Stock Trading Alerts as well as our other Alerts. Sign up for the free newsletter today!
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
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.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com