stock price trading

Stock Trading Alert: Market sentiment positive as investors hope for more gains

February 21, 2014, 6:55 AM

Our intraday outlook remains bearish, and our short-term outlook is neutral:

Intraday (next 24 hours) outlook: bearish
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 0.5-0.6% yesterday, retracing Wednesday’s decline, as investors bet that the long-term uptrend will continue. The S&P 500 index trades close to its January 15 all-time high of 1,850.84. The resistance is at around 1,840-1,850, and the nearest important support is at 1,800-1,810. The market continues to fluctuate within the December-January consolidation, 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 slightly positive, with index futures up between 0.1% and 0.2%. The main European stock market indexes have gained 0.2% so far. Investors will now wait for the Existing Home Sales announcement at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, close to its long-term highs. The resistance is at around 1,840, and the nearest support is at 1,820-1,830, as the 15-minute chart shows:

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

The technology Nasdaq 100 futures contract (CFD) remains close to its recent high, slightly below the resistance of 3,690-3,700. On the other hand the support remains at around 3,640. Will the uptrend continue? For now, it looks like a week-long consolidation:

Nasdaq100 futures contract - Nasdaq 100 index chart - NDX

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts

Did you enjoy the article? Share it with the others!

Gold Alerts

More

Dear Sunshine Profits,

gold and silver investors
menu subelement hover background