Stock Trading Alert originally published on May 29, 2014, 6:58 AM:
Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,885, S&P 500 index).
Our intraday outlook is still bullish, and our short-term outlook is now bullish, following a breakout above consolidation:
Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: bullish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes lost 0.1-0.3% yesterday, retracing some of their recent rally, as investors took profits. However, the S&P 500 index has managed to reach yet another new record high at 1,914.46. The nearest important support level is at around 1,880-1,900, marked by previous resistance. There have been no confirmed negative signals so far, as we can see on the daily chart:
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 been mixed between -0.2% and +0.2% so far. Investors will now wait for some economic data announcements: Initial Claims, GDP Second Estimate at 8:30 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) is in a relatively narrow intraday trading range, following yesterday's quite volatile trade. The nearest important resistance is at 1,910-1,915, and the nearest level of support is at 1,900-1,905. For now, it looks like a flat correction within an uptrend:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it fluctuates within a relatively narrow trading range. The resistance is at around 3,730, and the nearest important support remains at 3,700-3,710, marked by previous resistance, as the 15-minute chart shows:
Concluding, the broad stock market is in an uptrend, however, we can see some short-term uncertainty following recent rally. Nevertheless, we continue to maintain our already profitable long position, with stop-loss at 1,885 (S&P 500 index). In other words, we will try to let the profit run.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
SunshineProfits.com
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