Stocks Continue Long-Term Uptrend...Will It Accelerate Or Reverse?

June 2, 2014

Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1885, S&P 500 index).

Our intraday outlook is neutral, and our short-term outlook is bullish, following a breakout above consolidation:

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 were mixed between 0.0% and +0.2% on Friday, as investors hesitated following recent rally. Our Friday’s neutral intraday outlook has proved to be quite accurate. However, the S&P 500 index has managed to reach yet another new all-time high at 1,924.03. The nearest important support is at 1,880-1,900, marked by previous resistance. There have been no confirmed negative signals so far, although, we can see some short-term overbought:

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 gained 0.1-0.3% so far. Investors will now wait for some economic data announcements: ISM Index, Construction Spending, Factory Orders at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow intraday range, remaining close to its recent high. The nearest support is at around 1,910-1,915, and the resistance is at 1,925, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) continues to fluctuate, as it trades slightly below the short-term resistance of 3,740. There have been no confirmed negative signals so far. On the other hand, the support level is at 3,700-3,710, as the 15-minute chart shows:

Concluding, the broad stock market remains in a short-term uptrend, as it extends five-year long bull market. We continue to maintain our already profitable long position, with stop-loss at 1,885 (S&P500 index). In other words, we let the profit run while there is an uptrend.

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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