Stock Trading Alert: Sentiment Worsens But No Confirmation of …
Stock Trading Alert: Sentiment Worsens But No Confirmation of Trend Reversal Yet
By:
| Mon, May 5, 2014
Stock
Trading Alert originally published on May 05 , 2014, 8:00 AM:
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 lost 0.1-0.3% on Friday, retracing some
of their recent move up, as investors neglected better-than-expected monthly
employment report release. The S&P 500 index got closer to its early April
all-time high of 1,897.28, before moving slightly lower. The resistance remains
at around 1,880-1,900, and the nearest important level of support is at 1,850,
marked by recent local low, among others. For now, it looks like some sort
of a flat correction within an uptrend, however, the market remains close to
its important resistance levels, as we can see on the daily chart:
Expectations before the opening of today’s session are negative, with index
futures currently down 0.4-0.5%. The European stock market indexes have lost
between 1.1% and 1.4% so far, following some worse-than-expected economic data
releases, Russia-Ukraine conflict. Investors will now wait for the ISM Services
number release at 10:00 a.m. The S&P 500 futures contract (CFD) is in an
intraday downtrend, as it bounced off the resistance at
1,880-1,885. The nearest important support level is at around 1,845-1,855,
marked by the recent local lows, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) is in a similar intraday
downtrend, as it bounced off the psychological resistance at 3,600. For now,
it looks like a correction within a short-term uptrend, as there have been
no confirmed reversal signals so far:
Concluding, the broad stock market is expected to retrace some more of its
last-week’s gains, as investors react to economic data announcements, negative
geopolitical news. However, there have been no confirmed uptrend reversal signals
so far and it seems that our profitable long positions will remain such in
the coming days.
Thank you.
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Author: Paul Rejczak
Paul Rejczak
Stock Trading Strategist
Stock
Trading Alerts
SunshineProfits.com
Stock market strategist, who has been known for quality of his technical and
fundamental analysis since the late nineties. He is interested in forecasting
market behavior based on both traditional and innovative methods of technical
analysis. Paul has made his name by developing mechanical trading systems.
Paul is the author of Sunshine Profits‘
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Trading Alerts.
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Stock Trading Alert: Sentiment Worsens But No Confirmation of …
