Stock Trading Alert: Short-Term Uncertainty As Stocks Fluctuate, Is …
Stock Trading Alert: Short-Term Uncertainty As Stocks Fluctuate, Is Correction Over?
By:
| Mon, Jun 16, 2014
Stock
Trading Alert originally published on June 16, 2014, 7:07 AM:
Briefly: In our opinion speculative long positions are still favored
(with stop-loss at 1,910, S&P 500 index).
Our intraday outlook is neutral, and our short-term outlook remains bullish:
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 main U.S. stock market indexes gained 0.3% on Friday, retracing some of
their recent decline, as investors bet that stocks would resume long-term uptrend
following last week’s downward correction. The S&P 500 index bounced off
the support level of 1,915-1,925, marked by late May – early June consolidation.
On the other hand, the resistance remains at 1,950-1,955, marked by June 09
all-time high of 1,955.55. For now, it looks like a correction within an uptrend,
however, some further move down cannot be excluded. The important support level
remains at the psychological 1,900, as we can see on the daily chart:
Expectations before the opening of today’s session are slightly negative,
with index futures currently down 0.2-0.3%. The European stock market indexes
have lost between 0.2% and 0.5% so far. Investors will now wait for some economic
data announcements: Empire Manufacturing number at 8:30 a.m., Industrial Production,
Capacity Utilization at 9:15 a.m., NAHB Housing Market Index at 10:00 a.m.
The S&P 500 futures contract
(CFD) extends its short-term consolidation, as it trades along the level of
1,930. For now, it looks like a flat correction following last-week’s decline.
However, there is some relatively strong support level at around 1,915-1,925,
as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as
it fluctuates in a relatively narrow trading range. The resistance remains
at the psychological 3,800. On the other hand, the support level is at 3,750,
among others:
Concluding, the broad stock market is in a short-term consolidation, following
recent move down. It is hard to say whether this is a correction within a new
downtrend, or some sort of a bottoming consolidation. We remain cautiously
optimistic, expecting more upside. Therefore, we continue to maintain our already
profitable long position, with stop-loss at 1,910 (S&P 500 index).
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‘
premium service for stock traders: Stock
Trading Alerts.
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Stock Trading Alert: Short-Term Uncertainty As Stocks Fluctuate, Is …
