Stocks Extend Uptrend As Investors Sentiment Remains High – Will It Continue?

July 7, 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 main U.S. stock market indexes gained 0.5-0.6% on Thursday, accelerating their uptrend, as investors reacted to better-than-expected monthly jobs report release. The S&P 500 index reached a new all-time high at 1,985.89, moving closer to the psychological resistance level of 2,000. On the other hand, the nearest important support level is at around 1,970, marked by some recent local extremes, and the next level of support is at 1,950-1,960. There have been no confirmed negative signals, however, we can see some short-term overbought:

Expectations before the opening of today’s session are slightly negative, with index futures currently down 0.1%. The European stock market indexes have lost between 0.1% and 0.4% so far. The S&P 500 futures contract (CFD) is in a relatively narrow intraday range, following recent rally. The resistance level is at around 1,975-1,980, and the nearest level of support is at 1,965, marked by recent consolidation, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) broke above the level of 3,900, reaching new long-term highs. The nearest level of support is at 3,900, and a potential resistance level is at around 3,915-3,920. There are some overbought conditions, however, there have been no confirmed negative signals so far:

Concluding, the broad stock market rallied to new all-time highs last week, as the S&P 500 index moved closer to the level of 2,000. There have been no confirmed negative signals so far, however, we can see some short-term overbought which may lead to a correction. Therefore, 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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