Stocks Rebounded Off Tuesday's Low, New Uptrend?

IMG Auteur
Published : June 29th, 2017
637 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook remains 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 U.S. stock market indexes gained between 0.7% and 1.4% on Wednesday, retracing their Tuesday's move down, as investors reacted to economic data announcements, among others. The S&P 500 index bounced off Tuesday's local low at around 2,420. The broad stock market index is now trading around 0.5% below its last week's new all-time high of 2,453.82. It has reached new record high after a breakout above short-term consolidation along the level of 2,420-2,440. Stocks have rebounded sharply following their mid-May quick two-session sell-off and continued over eight-year-long bull market off 2009 lows. The Dow Jones Industrial Average was relatively weaker yesterday, as it gained 0.7%. It is trading closer to the level of 21,500. The technology Nasdaq Composite was relatively stronger than the broad stock market yesterday, as it gained 1.4% following big tech stocks rebound. The nearest important support level of the S&P 500 index is at around 2,425-2,430, marked by yesterday's daily low. The next level of support remains at 2,415-2,420, marked by some recent local lows. The support level is also at 2,400-2,410, marked by the May 25 daily gap up of 2,405.58-2,408.01, among others. On the other hand, level of resistance is at 2,450-2,455, marked by all-time high. There have been no confirmed negative signals so far. However, we can see overbought conditions and negative technical divergences. The S&P 500 index is trading within its three-week-long consolidation, as we can see on the daily chart:

24hGold - Stocks Rebounded Off...

Will Uptrend Continue?

Expectations before the opening of today's trading session are virtually flat, with index futures currently between -0.2% and +0.1% vs. yesterday's closing prices. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Initial Claims, GDP - Third Estimate at 8:30 a.m. The market expects that the U.S. Gross Domestic Product grew 1.2% in Q1. The S&P 500 futures contract trades within an intraday downtrend, as it retraces some of yesterday's move up. The nearest important level of resistance is at around 2,440-2,445, marked by local highs. On the other hand, support level is at 2,425-2,430, marked by some recent fluctuations, and the next support level is at 2,400-2,420. Is this a new short-term uptrend or just another move up within few-week-long consolidation?

24hGold - Stocks Rebounded Off...

Tech Stocks Rally

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday downtrend. The market retraces some of its Wednesday' rally. Is this just an upward correction? The nearest important level of resistance is at around 5,770-5,780, marked by local high. The next resistance level is at 5,800. On the other hand, support level remains at 5,700, among others, as the 15-minute chart shows:

24hGold - Stocks Rebounded Off...

Concluding, the S&P 500 index bounced off its Tuesday's low yesterday. The broad stock market has retraced its recent sell-off. But will it continue higher? The index is trading just 0.5% below last week's record high. There have been no confirmed negative signals so far. However, we still can see negative technical divergences, along with medium-term overbought conditions.

If you enjoyed the above analysis and would like to receive free follow-ups, we encourage you to sign up for our daily newsletter – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up now.

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts

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

Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Przemyslaw Radomski is the founder, owner and the main editor of www.SunshineProfits.com. Being passionately curious about the market’s behavior he uses his statistical and financial background to question the common views and profit on the misconceptions. “Don’t fight the emotionality on the market – take advantage of it!” is one of his favorite mottos. His time is divided mainly to analyzing various markets with emphasis on the precious metals, managing his own portfolio, writing commentaries, essays and developing financial software. Most of the time he’s got left is spent on reading everything he can about the markets, psychology, philosophy and statistics. Mr. Radomski has started investigating the markets for his private use well before starting his professional career. He used to work as an informatics consultant, but this time-consuming profession left him little time for his true passion – the interdisciplinary market analysis. Establishing www.SunshineProfits.com gave him the opportunity to put his thoughts, ideas, and experience into form available to other investors.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Get Ready To Party Like It’s 2008 - Dave Kranzler
21 OctSilverLining
Very good article, Dave. The S&P chart helps to visualize the uncharted territory the current market finds itself in. There is a confluence of fa...
The Fed Is Confused about What Drives Inflation
23 Octprljr
Central banking is the biggest lie or in other words the largest CON
The Fed Is Confused about What Drives Inflation
18 Octneville1
Hi Frank, Thanks for your article.......The fact of the matter is that LIES LIKE EVERYTHING ELSE DRIVES INFLATION , which as it so happens is 'THE'...
What kind of person runs for public office ?
17 OctThemis1
I liked the use of the self-actualization chart within the context of politicians and their motives. It probably applies to many in Hollywood as w...
The Silliness of the Bretton Woods Years
16 OctThe Recusant
KUDOS! The book is anti-gold slanted throughout and subtly mocks those that value gold as seen in that silly Las Vegas Golden Rooster tale. As I pr...
The Future (Not)
14 OctS W.-1
I have it on good authority that the Aliens living in Antarctica have discovered a way of turning Ice into Oil. All we have to do to secure ou...
Betrayal!
09 OctThemis1
I agree 100% with all the points you made. You have summarized my own anger and the reasons for it. My only consolation is that I believe the eli...
A silver price-suppression theory gets debunked
07 OctDoom-1
I think he linked the wrong article, because there's minimal facts and logic there relevant to price suppression. It's a shame, because I really wo...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS