Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Uptrend Continues, But...

Stock-Markets / Stock Markets 2018 Jul 16, 2018 - 03:57 PM GMT

By: Paul_Rejczak

Stock-Markets

Friday's trading session was pretty much uneventful, as investors awaited the coming quarterly earnings releases season. The S&P 500 index continued to trade along the level of 2,800 and it's closer to breaking higher towards the late January record high. There are still two possible medium-term scenarios, but bulls are happier than a week ago.

The U.S. stock market indexes were mixed between 0.0% and +0.4% on Friday, as investors took some short-term profits off the table following the recent advance. The S&P 500 index traded along the level of 2,800. It reached the highest since the early February. It currently trades 2.5% below the January's 26th record high of 2,872.87. The Dow Jones Industrial Average gained 0.4% and the technology Nasdaq Composite was unchanged on Friday.


The nearest important level of support of the S&P 500 index remains at around 2,780-2,785, marked by the recent local lows. The next support level is at 2,765-2,770, marked by last Wednesday's local low along with last Monday's daily gap up of 2,764.41-2,768.51. On the other hand, the resistance level remains at around 2,800, marked by the previous local highs from February, March and June. The level of resistance is also at 2,840, marked by January the 30th daily gap down.

The broad stock market broke above its recent trading range a week ago. Is this a new uptrend or just more medium-term fluctuations following January-February sell-off? If the S&P 500 index breaks above 2,800 mark, we could see more buying pressure. Perhaps we could see a move to new record high. However, there are still two possible medium-term scenarios - bearish that will lead us below the February low following trend line breakdown, and the bullish one in a form of medium-term double top pattern or a breakout towards 3,000 mark. The S&P 500 index is closer to breaking higher now:

Still Bullish?

Expectations before the opening of today's trading session are virtually flat, because the index futures contracts trade 0.1% higher vs. their Friday's closing prices. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements today: Retail Sales, Empire State Manufacturing at 8:30 a.m., Business Inventories at 10:00 a.m. Investors will also wait for the quarterly corporate earnings releases. The broad stock market will likely extend its short-term uptrend this morning. However, we may see a profit-taking action at some point.

The S&P 500 futures contract trades within an intraday consolidation following an overnight advance. The nearest important level of resistance is at around 2,805-2,810, marked by the local highs. On the other hand, the level of support is now at 2,790-2,795, among others. The futures contract remains close to its short-term upward trend line, as the 15-minute chart shows:

Nasdaq Trades Along New Record High

The technology Nasdaq 100 futures contract follows a similar path, as it trades along its short-term local highs. The market reached the new record high on Friday, as it broke above the level of 7,400. Will it continue upwards? There have been no confirmed negative signals so far. The nearest important level of support is at around 6,370, and the resistance level is at 7,410-7,420. The Nasdaq futures contract trades along the level of 7,400, as we can see on the 15-minute chart:

Apple Still Weaker, Amazon at Another New Record High

Let's take a look at Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com). The stock slightly extended its advance last week, but it still trades at the resistance level of around $190-195. On the other hand, support level remains at around $185, marked by the previous level of resistance:

Now let's take a look at Amazon.com, Inc. stock (AMZN) daily chart. It reached the new record high on Friday at the level of $1,815.30. The nearest important level of support is now at around $1,800, marked by the previous resistance level. We still can see negative medium-term technical divergences. But there have been no confirmed negative signals so far:

Dow Jones Slightly Above 25,000 Mark

The Dow Jones Industrial Average closed slightly above the level of 25,000 on Friday. The market extended its short-term uptrend, but will it continue higher despite some short-term overbought conditions? There have been no confirmed negative signals so far. The 200-day moving average acted as a support level recently, as we can see on the daily chart:

The S&P 500 index broke slightly above the level of 2,800 on Friday, as it got the highest since the early February. But will the broad stock market continue  towards its late January record high? It is just 2.5% below that level. Investors will now wait for the quarterly corporate earnings releases.

Concluding, the broad stock market will likely open virtually flat today. We may see more short-term uncertainty, as the S&P 500 index trades along its recent months' highs.

If you enjoyed the above analysis and would like to receive free follow-ups, we encourage you to sign up for our daily newsletter – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up now.

Thank you.

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.

* * * * *

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.

Paul Rejczak Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in