The S&P 500 index lost 0.70% on Wednesday as it retraced its Tuesday’s intraday advance after bouncing from the 4,500 level. The market reached 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, some technology/AI stocks’ valuation concerns, but investors’ sentiment remains bullish.
Stocks will likely open 0.3% higher today after the Consumer Price Index release. It was as expected at +0.2% m/m. 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 S&P 500 futures 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.
Here’s the breakdown
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The S&P 500 continues to trade along the 4,500 level after bouncing off the recent high of around 4,607.
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In my opinion, the short-term outlook is still bullish.
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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.
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