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S&P 500: Should We Buy This Rally?

By Sunshine Profits (Paul Rejczak)Stock MarketsApr 21, 2022 09:50AM ET
www.investing.com/analysis/sp-500-should-we-buy-this-rally-200622642
S&P 500: Should We Buy This Rally?
By Sunshine Profits (Paul Rejczak)   |  Apr 21, 2022 09:50AM ET
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The S&P 500 index gets closer to the 4,500 level again. So is this a new uptrend or still just an upward correction following the recent declines?

The broad stock market index lost 0.06% on Wednesday following Tuesday’s advance of 1.6%. Stocks were gaining ahead of quarterly earnings releases. So far, we’ve seen some mixed reactions to those releases. There’s still a lot of uncertainty concerning the Ukraine conflict and the Fed’s monetary policy tightening plans. However, we may see an attempt at breaking above the 4,500 level.

The nearest significant resistance level is now at around 4,500, marked by the recent support level and last Monday’s daily gap down. On the other hand, the support level is at approximately 4,350-4,400. The S&P 500 index broke above its downward trend line, as we can see on the daily chart:

S&P 500 Daily Chart
S&P 500 Daily Chart

(chart by courtesy of http://stockcharts.com):

Futures Contract Just Below Important 4,500 Level

Let’s look at the hourly chart of the S&P 500 futures contract. On Tuesday, it broke above its short-term downward trend line, and it retraced some of the recent declines. The market gets close to the 4,500 resistance level.

Recently, we closed a speculative long position with a gain of 100 points. (our premium Stock Trading Alert includes details of our trading positions along with the stop-loss and profit target levels).

S&P 500 Futures 1-Hour Chart
S&P 500 Futures 1-Hour Chart

(chart by courtesy of http://tradingview.com)

Conclusion

The market should get close to the 4,500 level and we may see some buying pressure if the index breaks above it. Investors will be waiting for more quarterly earnings releases, plus we will get speeches from the Fed Chair Powell today.

  • The S&P 500 index will likely extend its short-term uptrend today; a breakout above the 4,500 level may fuel additional rally.
S&P 500: Should We Buy This Rally?
 

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S&P 500: Should We Buy This Rally?

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Comments (10)
Istvan Nagy
Istvan Nagy Apr 27, 2022 9:20AM ET
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Did you buy your rally? you made tons of money for sure.
Pickle Bear
PickleBear99 Apr 22, 2022 1:33AM ET
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Yes please
Keith Spiller
Keith Spiller Apr 22, 2022 12:23AM ET
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of course not. shorted the entire way up and covered with a very nice profit today
Duke Maverick
Duke Maverick Apr 21, 2022 11:04PM ET
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wow! what a rally🥱
Murali Krishna
Murali Krishna Apr 21, 2022 8:55PM ET
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Because nobody will believe me if I say, based on my analysis, I will say, based on my Elliot Wave Principle analysis, SP 500 will go somewhere today. Remember analysis is my own cockamamie analysis, but I say based on Elliot Wave Principle analysis or Fibonacci or someone else analysis, Someone may believe
Murali Krishna
Murali Krishna Apr 21, 2022 8:55PM ET
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Yes yes yes, sp 500 is making new high next week, hurry up.
Shep De
Shep De Apr 21, 2022 7:33PM ET
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what rally?Done rallying for year soon , just relief rallies that end a lot lower
Steve Miller
Steve Miller Apr 21, 2022 6:53PM ET
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all these rallies are phony. spy puts ********these guys every time
Invest Right
Invest Right Apr 21, 2022 6:19PM ET
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Lol, what rally? This article was relevant only for like 1 hr after market open.
palmer long
palmer long Apr 21, 2022 1:50PM ET
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what rally. If you mean the Fed and Banksters buying up the market, before open each day to make the appearance that market is strong. plunge protection team doing their job. where would the market be without the thieves?
 
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