Stocks broke above their recent highs following Fed’s release – will the uptrend continue?

The S&P 500 index gained 1.05% on Wednesday, as it broke above the 4,100 level and some previous local highs following the FOMC interest rate decision announcement. Recently the broad stock market’s gauge was extending its bounce from the January 19 local low of 3,885.54.

Stocks will likely open 0.7% higher this morning after quarterly earnings, and economic data releases. So the market will extend an uptrend, and the S&P 500 may get closer to the important 4,200 level. It went the highest since late August of 2022 yesterday, as we can see on the daily chart:

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Futures Contract – New Local Highs

Let’s take a look at the hourly chart of the S&P 500 futures contract. It is trading higher this morning. The nearest important resistance level is at around 4,180, marked by the previous local high. On the other hand, the support level is now at 4,100.

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Conclusion

The S&P 500 is expected to open higher this morning. It will likely extend a short-term uptrend following yesterday’s breakout above the recent local highs. The market will be waiting for the important earnings releases today after the session’s close – we will get releases from AAPL, AMZN, GOOG.

Here’s the breakdown:

• The S&P 500 index broke above its short-term consolidation yesterday.
• Stocks will likely extend their uptrend and the index may get closer to the 4,200 level.
• In my opinion, the short-term outlook is neutral.

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