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 U.S. stock market indexes gained between 0.4% and 0.7% on Friday, extending their recent uptrend, as investors bet on a continuation of the long-term uptrend. The S&P 500 index got very close to its May 13 intraday all-time high of 1,902.17, as it reached the new record closing price at 1,900.53. The market is at the psychological resistance of 1,900. On the other hand, the nearest important level of support is at around 1,880, marked by previous resistance, and the next support is at 1,850-1,865, among others. There have been no confirmed negative signals so far, as we can see on the daily chart:
Expectations before the opening of today’s session are positive, with index futures currently up 0.4-0.5%. The main European stock market indexes have been mixed between 0.0% and +0.5% so far. Investors will now wait for series of economic data announcements: Durable Orders number at 8:30 a.m., Case-Shiller 20-city Index, FHFA Housing Price Index at 9:00 a.m., Consumer Confidence at 10:00. The S&P 500 futures contract (CFD) has extended its short-term uptrend throughout Monday’s holiday trading. It is slightly above the level of 1,900, which is a positive sign. The nearest important level of support is at around 1,895-1,900, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) is in a similar short-term uptrend, as it approaches the level of resistance at 3,690-3,700. On the other hand, the support remains at 3,650-3,660. There have been no confirmed negative signals so far:
Concluding, the broad stock market follows our bullish scenario, as it gets close to new record highs. Therefore, we continue to maintain our already profitable speculative long position, with stop loss at 1,850 - S&P 500 index.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
