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The S&P 500 index got back above the 4,700 level on Friday after gaining almost 1%. The only way is up now?

For in-depth technical analysis of various stocks and a recap of today's Stock Trading Alert we encourage you to watch today's video.

https://www.youtube.com/watch?v=-qEBS-PvvBs

The S&P 500 index broke above the 4,700 level on Friday, as it gained 0.95%. The market retraced most of its recent declines and it closed the highest in history. On the previous Friday the index fell to the local low of 4,495.12 and it was 5.24% below the Nov. 22 record high of 4,743.83. So bulls are back in full force now and we may see another attempt at getting back to the new all-time high. Today the broad stock market index is expected to open 0.2% higher, however it retraced most of its overnight advance.

The nearest important resistance level remains at 4,740-4,750, marked by the record high, among others. On the other hand, the support level is now at around 4,665-4,670, marked by the recent local lows. The next support level remains at 4,610-4,630, marked by the last Tuesday’s daily gap up of 4,612.60-4,631.97. The S&P 500 is still at its previous consolidation, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):

Nasdaq 100 Remains Close to the 16,400 Level

Let’s take a look at the Nasdaq 100 chart. The technology index got back to the 16,400 level last week. It is the nearest important resistance level, marked by some previous local highs. Tech stocks remain relatively weaker, as the Nasdaq 100 is still well below the Nov. 22 record high of 16,764.85.

Conclusion

The S&P 500 index will likely slightly extend its last week’s advances this morning. However we may see a short-term profit-taking action at some point. There have been no confirmed short-term negative signals so far, and we may see an attempt at getting back to the late November record high.

Here’s the breakdown:

• The S&P 500 is expected to open slightly higher this morning but we may see a consolidation above the 4,700 level.
• Our short-position is very close a stop-loss level, and we’ll close it if it breaks above it again.

Today's premium Stock Trading Alert includes details of our trading position. Interested in more exclusive updates? Join our premium Stock Trading Alerts newsletter and read all the details today.

Thank you.

Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care

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Stocks retraced some of their recent rally yesterday – was it just a quick downward correction before another leg up?

For in-depth technical analysis of various stocks and a recap of today's Stock Trading Alert we encourage you to watch today's video.

https://www.youtube.com/watch?v=NjgHy-co4OY

The S&P 500 index lost 0.72% on Thursday, as it retraced some of the recent advance and a rebound to the 4,700 level. This week the market retraced almost all of its late Nov. – early Dec. decline. Last Friday the index fell to the local low of 4,495.12 and it was 5.24% below the Nov. 22 record high of 4,743.83. This morning the index is expected to open 0.7% higher following the Consumer Price Index release. The data has been as expected at +0.8% m/m.

The nearest important resistance level remains at 4,700-4,750, marked by the record high, among others. On the other hand, the support level is at around 4,610-4,630, marked by Tuesday’s daily gap up of 4,612.60-4,631.97. The S&P 500 is at its previous consolidation, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):

Nasdaq 100 Bounced From the 16,400 Level

Let’s take a look at the Nasdaq 100 chart. The technology index got back to the 16,400 level on Wednesday and yesterday it retraced some of its recent advance, just like the broad stock market. However, tech stocks are relatively weaker, as the Nasdaq 100 is still well below the Nov. 22 record high of 16,764.85.

Conclusion

The S&P 500 index will likely retrace its yesterday’s decline this morning. So the broad stock market may extend a short-term consolidation following the recent rally. There have been no confirmed short-term negative signals so far and we may see an attempt at breaking above the 4,700 level following neutral CPI data release.

Here’s the breakdown:

• The S&P 500 is expected to open higher this morning and we may see a consolidation along the 4,700 level.
• We are still maintaining our short position from the 4,678 level.

Today's premium Stock Trading Alert includes details of our trading position. Interested in more exclusive updates? Join our premium Stock Trading Alerts newsletter and read all the details today.

Thank you.

Paul Rejczak,
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care

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Available to premium subscribers only.

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Available to premium subscribers only.

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