The S&P 500 index gained 0.93% on Monday as it broke above the 4,300 level following its Friday’s intraday pullback. The daily high was at 4,340.13 yesterday and it was the highest since April of 2022.
There is still a lot of uncertainty concerning tomorrow’s FOMC and some technology stocks’ valuation concerns, but overall, the investors’ sentiment is still bullish.
The broad stock market index is expected to open 0.4% higher following the Consumer Price Index release. The CPI number was at +4.0% vs. the expected +4.1% y/y. S&P 500 is trading above a month-long upward trend line, as we can see on the daily chart:
Futures Contract Trades Along 4,400
Let’s take a look at the hourly chart of the S&P 500 futures contract. It broke slightly above the 4,400 level this morning. The support level remains at around 4,350, among others.
The S&P 500 is expected to open higher this morning, so the market will reach a new medium-term high. The sentiment is bullish after the CPI number release. Investors will be waiting for tomorrow’s FOMC Rate Decision, among others. There have been no confirmed negative signals so far.
Here’s the breakdown:
- The S&P 500 will likely extend its uptrend ahead of tomorrow’s Fed Rate Decision release.
- There have been no confirmed negative signals so far.
- In my opinion, the short-term outlook is bullish.
Thank you.