July 7, 2023 (Investorideas.com Newswire) Stocks retraced their recent rally yesterday – is this a new downtrend, or just quick correction?
The S&P 500 index lost 0.79% on Thursday as it went closer to the 4,400 level again. The market retraced its rally and it closed Friday’s daily gap up yesterday. On Friday the index was the highest since April of 2022. Last week it retraced all of its recent declines following economic data releases, among other factors.
There is still a lot of uncertainty concerning monetary policy, some technology stocks’ valuation concerns, but the investors’ sentiment remains bullish.
Stocks are expected to open 0.1% following lower than expected Nonfarm Payrolls release. The index remains above the 4,400 level as we can see on the daily chart:
Futures Contract Extends Consolidation
Let’s take a look at the hourly chart of the S&P 500 futures contract. Last week it rallied up to the 4,500 level again and yesterday it retraced some of the rally. The nearest important support level is at 4,400-4,420 and the resistance level remains at 4,480-4,500.
The S&P 500 index will likely go sideways following its yesterday’s retreat. There have been no confirmed negative signals so far. For now it looks like a relatively flat correction within an uptrend. However, the market may see a more pronounced profit taking action at some point.
Here’s the breakdown:
The S&P 500 will likely extend its consolidation above the 4,400 level..
There have been no confirmed negative signals, however, a downward correction may be in cards.
In my opinion, the short-term outlook is bullish.
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/