stock price trading

Stock Trading Alert: Indexes near their highs as investors hope for more gains

October 28, 2013, 6:51 AM

The main U.S. stock market indexes gained between 0.4% and 0.6% on Friday, as investors hoped for a continuation of the long-term uptrend. The S&P 500 reached its new all-time high at 1,759.82, moving slightly above last Tuesday’s high of 1,759.33. The market remains above the May-October consolidation’s upper limit, which is a positive sign. The nearest support is at 1,733.45-1,735.74, marked by the October 18 daily gap up. The next support is at 1,729.86, marked by the September 19 high. On the other hand, the nearest resistance level seems to be at around 1,760, as we can see on the daily chart:

Daily S&P 500 index chart - SPX, Large Cap Index

Expectations before the opening of today’s session are positive, with index futures currently gaining 0.3% vs. their Friday’s closing prices. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Industrial Production and Capacity Utilization at 9:15 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) trades near its long-term highs, in the vicinity of 1,760. However, today morning we can see some short-term retracement. The support is at around 1,750-1,755, marked by the recent highs, as the 15-minute chart shows:

S&P500 futures contract - S&P 500 index chart - SPX

Our intraday outlook is bearish, and our short-term outlook remains neutral, as there may be some further uncertainty following recent rally:

Intraday outlook: bearish
Short-term outlook: neutral
Medium-term outlook: neutral
Long-term outlook: bullish

The above analysis is the first of today's 2+ Stock Trading Alerts. Stay as updated as possible on the current events and trends on the stock market by choosing our Stock Trading Alert subscription service

Thank you,
Paul Rejczak

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