Stock Trading Alert: At Important Resistance - Will Uptrend Continue?

By: Paul Rejczak | Thu, May 8, 2014
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Stock Trading Alert originally published on May 08 , 2014, 7:06 AM:


 

Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).

Our intraday outlook is bullish, and our short-term outlook remains neutral:

Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes were mixed between -0.3% and +0.7% yesterday, following volatile trading session, as investors remained undecided. The S&P 500 index extends its medium-term consolidation, as it trades below the level of resistance at 1,880-1,900. On the other hand, the nearest support level is at around 1,850. Yesterday's low fell slightly below the level of 1,860, then the market has rallied quite strongly, closing near the level of 1,880. So, there is still no clear short-term direction, as the broad market fluctuates within over two-month long consolidation, as we can see on the daily chart:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's session are virtually flat, with index futures currently up 0.1%. The main European stock market indexes have gained 0.5-0.7% so far. Investors will now wait for the Initial Claims data release at 8:30 a.m. The S&P 500 futures contract (CFD) is in a relatively narrow intraday trading range, following yesterday's rebound. The resistance level remains at around 1,880-1,885, and the support is at 1,855, among others. There have been no confirmed negative signals so far, however, the market seems trendless:

S&P500 Futures Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) is relatively weaker than the broad market, as it trades below its recent highs. The resistance is at around 3,600, and the nearest important support is at 3,500. There is no clear short-term direction, as the 15-minute chart shows:

NASDAQ 100 Futures Chart
Larger Image

Concluding, we continue to maintain our speculative long position in the S&P 500, hoping for a breakout above medium-term consolidation. The stop-loss remains at 1,850.

Thank you.

 


 

Paul Rejczak

Author: Paul Rejczak

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
SunshineProfits.com

Paul Rejczak

Stock market strategist, who has been known for quality of his technical and fundamental analysis since the late nineties. He is interested in forecasting market behavior based on both traditional and innovative methods of technical analysis. Paul has made his name by developing mechanical trading systems. Paul is the author of Sunshine Profits' premium service for stock traders: Stock Trading Alerts.

Disclaimer: All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak's reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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