Stock Market Trading at New Record High - Will Uptrend Extend Even Further?

By: Paul_Rejczak

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,150 and profit target at 1,980, S&P 500 index)

Our intraday outlook is bearish, and our short-term outlook is bearish:

Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes gained between 0.6% and 0.9% on Friday, extending their short-term uptrend, as investors remained bullish following economic news releases. The S&P 500 index has reached yet another new all-time high at the level of 2,110.61. The nearest important level of support is at around 2,100, marked by previous resistance level. There have been no confirmed negative signals so far. However, we can see overbought conditions accompanied by negative divergences:

Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.1-0.2%. The main European stock market indexes have been mixed so far. Investors will now wait for the Existing Home Sales number announcement at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday downtrend, as it retraces some of its Friday's move up. The nearest important resistance level is at around 2,110, marked by Friday's local high. On the other hand, support level is at 2,100, among others, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) remains relatively stronger than the broad stock market, as it trades close to long-term high. The nearest important level of resistance is at 4,440-4,450, and support level is at 4,420-4,430, among others, as the 15-minute chart shows:

Concluding, the broad stock market extended its short-term uptrend on Friday. There have been no confirmed negative signals. However, we continue to maintain our speculative short position (S&P 500 index), as we expect a downward correction or an uptrend reversal. Stop-loss is at 2,150, and potential profit target is at 1,980. It is always important to set some exit price level in case some events cause the price to move in the unlikely direction. Having safety measures in place helps limit potential losses while letting the gains grow.

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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Disclaimer

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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