Pause In A Trend Or Topping Pattern?

June 12, 2014

Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1910, S&P500 index).

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

Intraday (next 24 hours) outlook: neutral
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 between 0.1% and 0.6% on Wednesday, retracing some of their recent move up, as investors took some profits off the table. The S&P 500 index bounced off the nearest resistance level at around 1,950-1,955, marked by Monday’s all-time high of 1,955.55. The nearest important level of support is at 1,940, and the next support is at 1,915-1,925, marked by recent consolidation. For now, it looks like a relatively shallow correction within an uptrend. 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 slightly positive, with index futures currently up 0.1%. The main European stock market indexes have been mixed between 0.0% and +0.2% so far. The S&P 500 futures contract (CFD) remains slightly below its record highs, as it continues to fluctuate below the resistance of 1,950-1,955. The nearest important level of support is at around 1,940, marked by recent local lows. For now, it looks like a consolidation following recent advance, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is close to its long-term high, as it extends fluctuations along the level of 3,800. The support level is at around 3,780. There have been no confirmed negative signals so far:

Concluding, the broad stock market is in a rather flat correction following recent rally. We expect some more upside. Therefore, we continue to maintain our already profitable long position, with stop-loss at 1,910 (S&P 500 index).

Thank you.

Paul Rejczak
Stock Trading Strategist

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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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