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Stock Trading Alert: Broad Stock Market At New Highs – Investors Take Some Profits, Flat Correction Or Topping Pattern?

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



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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