Stock Trading Alert: Stocks Continue To Fluctuate, Will They Trend Up Or Top Out?

May 12, 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 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 0.2-0.4% on Friday, extending their recent fluctuations, as investors remained uncertain following some mixed economic data announcements, Fed releases. The S&P 500 index remains close to the resistance of 1,880-1.900. On the other hand, the level of support is at 1,850, among others. There have been no confirmed negative signals so far. For now, it looks like a flat correction within long-term uptrend, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.2-0.3%. The European stock market indexes have been mixed between -0.1% and +0.3%. The S&P500 futures contract (CFD) extends its short-term consolidation, as it trades below the resistance level of 1,880-1,885. The nearest support remains at around 1,855-1,860. Still with no clear direction, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is in a similar short-term consolidation, fluctuating below the level of resistance at 3,600. On the other hand, the support is at 3,500. There have been no confirmed negative signals so far. However, there is also no clear direction:

Concluding, the broad stock market extends its short-term consolidation, as it trades slightly below two-month long resistance. In our opinion, it is not the time to be out of the long position just yet, because there have been no confirmed sell signals. Our long positions remain profitable, but it seems that they will become even more profitable in the coming days. Our stop-loss remains 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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