Stocks extend their short-term consolidation – is this a topping pattern?

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 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, 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:

Chart

Futures contract continues sideways

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.

Chart

Conclusion

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.


Want free follow-ups to the above article and details not available to 99%+ investors? Sign up to our free newsletter today!

Share: Feed news

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA 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. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families 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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD tests nine-day EMA near 1.0450, improved RSI supports upside

EUR/USD tests nine-day EMA near 1.0450, improved RSI supports upside

EUR/USD extends its gains for the third consecutive day, trading around 1.0440 during the Asian hours on Monday. A review of the daily chart shows an ongoing bearish bias as the pair is confined within a descending channel pattern.

EUR/USD News
GBP/USD consolidates in a range around 1.2570 area; upside potential seems limited

GBP/USD consolidates in a range around 1.2570 area; upside potential seems limited

The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading range above mid-1.2500s during the Asian session. Moreover, the fundamental backdrop warrants caution before positioning for an extension of Friday's bounce from the 1.2475 area, or the lowest level since May. 

GBP/USD News
Gold price holds comfortably above $2,600 mark; lacks bullish conviction

Gold price holds comfortably above $2,600 mark; lacks bullish conviction

Gold price oscillates in a range at the start of a new week amid mixed fundamental cues. Geopolitical risks continue to underpin the XAU/USD amid subdued US Dollar price action. The Fed’s hawkish stance backs elevated US bond yields and caps the pair’s gains.

Gold News
The US Dollar ends the year on a strong note

The US Dollar ends the year on a strong note

The US Dollar ends the year on a strong note, hitting two-year highs at 108.45. The Fed expects a 50-point rate cut for the full year 2025 versus 4 cuts one quarter earlier, citing higher inflation forecasts and a stubbornly strong labour market. 

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures