Stock Trading Alert: SP500 Bounced Off 1900 Level – Safehaven.com
Stock Trading Alert: SP500 Bounced Off 1,900 Level – Uptrend Reversal Or Just A Correction?
By:
| Thu, May 15, 2014
Stock
Trading Alert originally published on May 15 , 2014, 7:05 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 U.S. stock market indexes lost between 0.5% and 0.6% on Wednesday, retracing
some of their recent move up, as investors took profits off the table. The
S&P 500 index bounced off the resistance level at around 1,900, marked
by Tuesday’s all-time high of 1,902.17. On the other hand, the nearest level
of support is at 1,860-1,870, and the next support is at 1,850. For now, it
looks like a short-term correction within an uptrend, as we can see on the
daily chart:
Expectations before the opening of today’s session are virtually flat, with
index futures mixed between -0.1% and +0.1%. The main European stock market
indexes have lost 0.1-0.2% so far, following some worse-than-expected economic
data releases. Investors will now wait for the U.S. economic data announcements:
Initial Claims, Consumer Price Index and Empire Manufacturing number at 8:30
a.m., Industrial Production, Capacity Utilization at 9:15 a.m., Philadelphia
Fed, NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract
(CFD) is in a short-term downward correction, retracing some of its recent
rally. The nearest important support is at 1,880-1,885, marked by previous
resistance, and the resistance remains at the psychological 1,900:
The technology Nasdaq 100 futures contract (CFD) trades in a relatively narrow
range, following recent move up. The resistance is at 3,620-3,630, marked by
the late April local high, among others. On the other hand, the support is
at 3,580-3,600 (previous resistance). For now, it looks like a correction within
short-term uptrend, as the 15-minute chart shows:
Concluding, there have been no confirmed negative signals so far, however,
the broad stock market has retraced some of its recent uptrend. We continue
to maintain our profitable long position, with stop-loss at 1,850 (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: SP500 Bounced Off 1900 Level – Safehaven.com
