S&P 500 Reached 4,000 - Is Bear Market Over?
November 14, 2022 (Investorideas.com Newswire) Stock prices extended their advance on Friday, as the S&P 500 index reached the 4,000 level. We may see a profit-taking action, however, bulls are still in charge.
The S&P 500 index gained 0.92% on Friday following its Thursday's rally of 5.5%. The market remained bullish after the Thursday's Consumer Price Index release and the broad stock market's gauge went the highest since September 13. On Friday, the daily high was at 4,001.48.
This morning the S&P 500 index is expected to open 0.3% lower. We may see a profit-taking action at some point. However, there have been no confirmed negative signals so far.
The S&P 500 index broke above its previous local highs last week and it got to the 4,000 level, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):
Futures Contract - Short-Term Uncertainty
Let's take a look at the hourly chart of the S&P 500 futures contract. It went slightly above the 4,000 level on Friday. For now, it looks like a flat correction within an uptrend or a short-term consolidation. The resistance level is at 4,000-4,050, among others.
In our opinion, no positions are currently justified from the risk/reward point of view. (chart by courtesy of http://tradingview.com):
The stock market will likely fluctuate following its last week's Thursday's-Friday's huge rally. The S&P 500 index may take a breather, as it got to the 4,000 level last week. We may see some profit-taking action in the day, as the market seems overbought in the short-term. However, there have been no confirmed negative signals so far.
Here's the breakdown:
- The S&P 500 may remain below the 4,000 level for some time, as investors are likely to take short-term profits off the table.
- For now, it looks like a consolidation within an uptrend.
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