Stocks Pause Ahead of Key Data
Sunshine Profits | Jun 08, 2023 09:15AM ET
The S&P 500 index lost 0.38% on Wednesday as it continued to fluctuate below the 4,300 level following its last week’s rally. On Monday, the market reached a new medium-term high of 4,299.28, and it was the highest since August of 2022.
Yesterday it went to the daily high of 4,299.19 before closing slightly below the 4,270 level. There is still a lot of uncertainty concerning monetary policy, the coming economic data releases, and some technology stocks’ valuation, but overall, the investors’ sentiment remains bullish.
Stocks are expected to open 0.1% higher today. So the S&P 500 index will further extend its consolidation. Recently it broke above a two-month-long trading range as we can see on the daily chart:
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading along the 4,270 level. The resistance level is at 4,300, and the support level remains at 4,250, among others.
The S&P 500 will extend its short-term consolidation this morning. Investors are now waiting for the next week’s crucial economic data releases, including Tuesday’s CPI and Wednesday’s FOMC, among others. For now, it looks like a relatively flat correction within an uptrend. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 will likely extend its consolidation this morning; the market is waiting for the next week’s economic data.
- There have been no confirmed negative signals so far.
- In my opinion, the short-term outlook is still bullish.
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