Stocks Are In a Rally Mode – Is This Just a Correction?
Stock-Markets / Stock Market 2023 Nov 02, 2023 - 09:08 PM GMTBy: Paul_Rejczak
S&P 500 went closer to 4,300 level again – will the uptrend resume?
The S&P 500 index gained 1.05% on Wednesday as it got back above the 4,200 level following FOMC monetary policy release. Recently the market kept selling-off on geopolitical uncertainty, strong U.S. dollar, among other factors. Last Friday’s low was at 4,103.78 and it was the lowest since May 12. Yesterday’s daily high was at 4,245.64.
In early October stocks were rallying from their local lows along 4,220 level and on October 17 the index reached a local high of 4,394. There’s still a lot of uncertainty about monetary policy, economic growth and geopolitics.
Stocks are expected to open 0.8% higher this morning, so the S&P 500 will further extend its short-term advance. Recently it broke above the downward trend line as we can see on the daily chart:
Futures Contract Gets Closer to 4,300
Let’s take a look at the hourly chart of the S&P 500 futures contract. On Friday it bounced from 4,120 level and this morning it’s trading closer to the 4,300. The resistance level is now at 4,300-4,320 and the support level is at 4,250, among others.
Conclusion
The S&P 500 will likely extend its short-term uptrend this morning. The investors’ sentiment further improved following yesterday’s FOMC Statement. However, it still looks like a correction following the recent declines.
Investors will be waiting for the important quarterly earnings release from AAPL – today after the session’s close. Tomorrow we will also get the monthly jobs data.
Here’s the breakdown:
- The stock market extends a rally from its last Friday’s local low.
- The S&P 500 broke above 4,200 mark yesterday.
- In my opinion, the short-term outlook is still bullish.
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Thank you.
Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
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