Stock Trading Alert: Further Uncertainty As Indexes Gained On Friday, Will Uptrend Resume?

May 19, 2014

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

Our intraday outlook is still 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 main U.S. stock market indexes gained between 0.3% and 0.6%, retracing some of the recent declines, as investors reacted to better-than-expected housing data announcement. Our speculative long positions have regained some of their recent losses. The S&P 500 index extends its medium-term consolidation, as it continues to trade below the level of resistance at 1,880-1,900. The nearest important support is at around 1,860, marked by recent local lows, and the next support is at 1,850. 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 negative, with index futures currently down 0.4%. The European stock market indexes have lost 0.7-0.8% so far. The S&P 500 futures contract (CFD) is within its late April – early May consolidation, as it bounced off the psychological resistance of 1,900. The nearest important resistance is at 1,880-1,885, and the support is at 1,855-1,860, among others. There is no clear short-term direction, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD)  is in an analogous short-term consolidation, as it bounced off the resistance at 3,600-3,620. On the other hand, the support is at around 3,540, marked by recent local lows:

Concluding, the broad stock market is still driven by uncertainty. However, it appears to be consolidate before moving upward. Therefore, we continue to maintain our speculative long position, with stop-loss at 1,850 (S&P 500 index).

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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