The S&P 500 index gained 0.84% on Thursday as it broke above the recent local high. The market was advancing after the important Wednesday’s CPI and Thursday’s PPI releases. Recently the index traded along the 4,450 level and yesterday it broke slightly above the 4,500 mark. There’s still a lot of uncertainty about monetary policy, economic growth and stock prices continue to move sideways after their advances from March to July.
Stock prices are expected to open virtually flat this morning following better-than-expected Empire State Manufacturing Index release. The index retraced more of its recent declines yesterday as we can see on the daily chart:
Futures contract trades close to 4,550
Let’s take a look at the hourly chart of the S&P 500 futures contract. This morning it’s trading along the 4,550 level. The resistance level is at around 4,580-4,600 and the support level is at 4,500-4,520, among others.
The S&P 500 will likely fluctuate following its yesterday’s advance. There may be some uncertainty as the market gets closer to the recent local high of around 4,540. However, there have been no confirmed short-term negative signals so far.
Recently the investors’ sentiment improved as the pressure for further monetary policy tightening somewhat eased. But stocks retraced most of their late August rally after bouncing off their mid-July local lows resistance level.
Here’s the breakdown
Stocks retraced more of their recent declines but they remain below the early September highs.
The S&P 500 went back above the 4,500 level.
In my opinion, the short-term outlook is still bullish.
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