Stock Trading Alert: Stocks ought to extend rally
The main U.S. stock market indexes gained between 0.1% and 0.4% on a holiday-shortened Tuesday’s trading session as investors kept buying stocks.
The S&P 500(NYSEARCA:SPY) index achieved its new all-time intraday and closing high at 1,833.32, moving further away from the support at around 1,810-1,815, marked by recent resistance. There are no confirmed uptrend reversal signals, however the market is getting technically overbought, as we can see on the daily chart:
Expectations before the opening of today’s session are positive, with index futures currently gaining 0.4-0.7%. Investors will now wait for the Initial Claims data release at 8:30 a.m. The S&P 500 futures contract (CFD) continues its uptrend as it breaks above the level of 1,830. The nearest important level of support remains at 1,820-1,825, as the 15-minute chart shows:
Our intraday outlook is neutral, and our short-term outlook is 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 above analysis is the first of today’s 2+ Stock Trading Alerts.
Thank you.
Contributed by Paul Rejczak, Sunshine Profits
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Stock Trading Alert: Stocks ought to extend rally
