Indexes Close To Their Highs Ahead Of Shortened Pre-Holiday Session

July 3, 2014

Briefly: In our opinion, no speculative positions are justified.

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

Intraday (next 24 hours) outlook: neutral
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 gained 0.1% on Wednesday, as investors reacted to some better-than-expected economic data releases. Our yesterday’s neutral intraday outlook has proved to be accurate. The S&P 500 index remained slightly below its Tuesday’s all-time high of 1,978.58. The nearest important resistance level is at around 1,980, and the next level of resistance is at the psychological 2,000. On the other hand, the support level is at 1,960, marked by some of the recent local extremes. The index remains above month-long upward trend line, which is positive. There have been no confirmed negative signals so far, however, we can see short-term overbought:

Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have gained 0.5-0.7% so far. Investors will now wait for series of economic data announcements: Nonfarm Payrolls, Unemployment Rate, Initial Claims, Trade Balance at 8:30 a.m., ISM Services at 10:00 a.m. The S&P 500 futures contract (CFD) trades close to its all-time high, as it continues to fluctuate along the level of 1,965-1,970. The nearest important support level is at around 1,960, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) is in an analogous consolidation, close to its long-term high. The resistance level is at the psychological 3,900. On the other hand, the level of support is at 3,880, marked by recent local lows, as the 15-minute chart shows:

Concluding, the broad stock market is in a short-term flat correction within an uptrend. There have been no negative signals so far, however, we can see some overbought conditions which may lead to a correction. We think that it is better to stay out of the market at this moment.

Thank you.

Paul Rejczak
Stock Trading Strategist

Stock Trading Alerts

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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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