Stock Trading Alert: Broad Stock Market At New Highs - Will Uptrend Continue?

By: Paul Rejczak | Mon, Dec 29, 2014
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Stock Trading Alert originally published on December 29, 2014, 6:30 AM:


 

Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains neutral, and our short-term outlook is neutral:

Intraday (next 24 hours) outlook: neutral
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 gained between 0.1% and 0.7% on Friday, during a shortened trading session as investors' sentiment remained bullish. The S&P 500 index has reached yet another new all-time high at the level of 2,092.70. The nearest important level of resistance is at around 2,090-2,100. On the other hand, support level is at 2,080, marked by previous local high, among others. There have been no confirmed negative signals so far, however, we can see some overbought conditions accompanied by negative technical divergences:

S&P500 Daily Chart
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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. The S&P 500 futures contract (CFD) retraces some of its recent move up, as it trades along the level of 2,080. The nearest important level of resistance is at around 2,085-2,090, marked by last week's highs. On the other hand, support level remains at 2,060-2,070, among others, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
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The technology Nasdaq 100 futures contract (CFD) followed a similar path, as it bounced off resistance level at around 4,320. The nearest important level of support is at 4,290-4,300, as the 15-minute chart shows:

NASDAQ 100 Futures 15-Minute Chart
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Concluding, the broad stock market slightly extended its rally on Friday, as the S&P 500 index reached new all-time high. We can see some short-term overbought conditions, however, there have been no confirmed negative signals so far. Therefore, we prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.

Thank you.

 


 

Paul Rejczak

Author: Paul Rejczak

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
SunshineProfits.com

Paul Rejczak

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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