• 4 days 3 Restaurant Stocks In Full Recovery Mode
  • 4 days Bitcoin Is Driven By Testosterone
  • 9 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 10 days How To Invest In The Cybersecurity Boom
  • 12 days Investors Are Patient With Unprofitable Giants
  • 14 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 16 days 5 Stocks To Keep A Close Eye On This Year
  • 17 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 18 days Central America Is Ready For The Bitcoin Hustle
  • 20 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 21 days Top Performing Stocks As Inflation Fears Grow
  • 22 days US Airline Stocks Take A Beating On New EU Restrictions
  • 23 days This IPO Could Open Sustainable Fashion Floodgates
  • 24 days Crypto Crime Nets Another $2B Fraudster
  • 26 days This Week’s Hottest Meme Stocks
  • 27 days Why World Markets Should Be Watching Germany Closely
  • 29 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 31 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 33 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 34 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

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: SP500 At New All-Time High - Will It Continue Higher?

Stock Trading Alert originally published on July 21, 2016, 6:57 AM:


 

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,210, and profit target at 2,050, S&P 500 index).

Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook is now neutral, following S&P 500 index breakout above last year's all-time high:

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): neutral

The main U.S. stock market indexes gained between 0.2% and 1.2% on Wednesday, extending their short-term uptrend, as investors reacted to quarterly corporate earnings releases. The S&P 500 index has reached yet another new all-time high at the level of 2,175.63. The nearest important level of resistance is at 2,170-2,175, and the next potential resistance level is at 2,200. On the other hand, support level is at around 2,150-2,155, marked by short-term local lows. The next important support level is at 2,130-2,135, marked by previous level of resistance. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions accompanied by negative technical divergences:

S&P500 Futures Daily Chart
Larger Image

Expectations before the opening of today's trading session are virtually flat, with index futures currently down 0.1%. The European stock market indexes have lost 0.2-0.3% so far. Investors will now wait for some economic data announcements: Initial Claims, Philadelphia Fed at 8:30 a.m., FHFA Housing Price Index at 9:00 a.m., Existing Home Sales, Leading Indicators at 10:00 a.m. The S&P 500 futures contract trades within an intraday consolidation, following yesterday's advance. The nearest important level of resistance is at around 2,170. On the other hand, support level is at 2,150-2,160, among others, as we can see on the 15-minute chart:

S&P500 Futures Hourly Chart
Larger Image

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades within an intraday consolidation along the level of 4,650. The nearest important level of resistance is at around 4,660-4,670. On the other hand, support level remains at 4,600, among others, as the 15-minute chart shows:

MASDAQ100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market extended its short-term uptrend on Wednesday, as investors reacted to quarterly corporate earnings releases. The S&P 500 index trades close to its new all-time high. We still can see short-term overbought conditions accompanied by bearish technical divergences. Therefore, we continue to maintain our speculative short position (opened on Monday at around 2,162 - Monday's average opening price of the S&P 500 index). Stop-loss level is at 2,210 and potential profit target is at 2,050 (S&P 500 index). You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. 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.

Thank you.

 

Back to homepage

Leave a comment

Leave a comment