• 394 days Will The ECB Continue To Hike Rates?
  • 394 days Forbes: Aramco Remains Largest Company In The Middle East
  • 396 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 795 days Could Crypto Overtake Traditional Investment?
  • 800 days Americans Still Quitting Jobs At Record Pace
  • 802 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 805 days Is The Dollar Too Strong?
  • 806 days Big Tech Disappoints Investors on Earnings Calls
  • 806 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 808 days China Is Quietly Trying To Distance Itself From Russia
  • 808 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 812 days Crypto Investors Won Big In 2021
  • 813 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 813 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 816 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 816 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 819 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 820 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 820 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 822 days Are NFTs About To Take Over Gaming?
Paul Rejczak

Paul Rejczak

Writer, Sunshine Profits

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…

Contact Author

  1. Home
  2. Markets
  3. Other

Stock Trading Alert: Closer To All-Time High - Make Or Break Moment

Stock Trading Alert originally published on May 22, 2014, 7:12 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 still 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 main U.S. stock market indexes gained 0.8-1.0% yesterday, breaking above their recent consolidation, as investors' sentiment improved following FOMC Minutes release, among others. The S&P 500 index remains slightly below its May 13 all-time high of 1,902.17. The resistance is at 1,880-1,900. On the other hand, the support level is at 1,860-1,865, and the next support is at 1,850. There have been no confirmed negative signals so far, however, there has been no clear breakout above medium-term consolidation neither:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's session are virtually flat, with index futures currently up 0.1%. The European stock market indexes have been mixed between -0.2% and +0.2% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Existing Home Sales, Leading Indicators at 10:00 a.m. The S&P 500 futures contract (CFD) trades slightly below last week's highs, following yesterday's move up. The resistance is at around 1,895-1,900, and the nearest important support level is at 1,880-1,885, marked by previous resistance, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) continues its short-term uptrend, as it is above the resistance of 3,600-3,620. The nearest resistance is at 3,650-3,670, marked by some early April local highs. On the other hand, the nearest important support is at 3,600, marked by previous resistance, as the 15-minute chart shows:

NASDAQ 100 Futures Chart
Larger Image

Concluding, the broad stock market confirms our speculative long position (which is already profitable), as it approaches last week's all-time high. Will it break above the resistance? It is hard to say. However, we are quite comfortable with our long position here, with stop-loss at 1,850 (S&P 500 index).

Thank you.


Back to homepage

Leave a comment

Leave a comment