Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
BREWING FINANCIAL CRISIS 2.0 Suggests RECESSION 2022 - 28th Jan 22
Financial Stocks Sector ETF XLF $37.50 Continues To Present Opportunities - 28th Jan 22
Stock Market Rushing Headlong - 28th Jan 22
The right way to play Climate Change Investing (not green energy stocks) - 28th Jan 22
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

S&P 500 Just 2% Below Record High, But There's More Stock Market Uncertainty

Stock-Markets / Stock Markets 2018 Jul 19, 2018 - 06:02 PM GMT

By: Paul_Rejczak

Stock-Markets

Stocks were basically unchanged on Wednesday, as investors took short-term profits off the table following the recent rally. Is this a topping pattern before downward reversal, or just a quick flat correction before another leg up? Will quarterly earnings releases drive the market higher?

The U.S. stock market indexes were mixed between 0.0% and 0.3% on Wednesday, as investors' sentiment remained pretty bullish following the recent rally. The S&P 500 index reached the highest since the early February, as it slightly extended its short-term uptrend yesterday. It currently trades just 2.0% below the January's 26th record high of 2,872.87. The Dow Jones Industrial Average gained 0.3% and the technology Nasdaq Composite was unchanged on Wednesday.


The nearest important level of support of the S&P 500 index remains at around 2,790-2,800, marked by the previous resistance level. The next level of support is at 2,780-2,785, marked by the recent local lows. The support level is also at 2,765-2,770, marked by last week's Wednesday's local low along with last week's Monday's daily gap up of 2,764.41-2,768.51. On the other hand, a potential resistance level is at 2,835-2,850, marked by January the 30th daily gap down of 2,837.75-2,851.48.

The broad stock market extended its short-term uptrend yesterday, as the S&P 500 index reached new local high above the level of 2,815. It is getting closer to the January topping pattern of around 2,840-2,870. Will it continue towards new record highs? There are still two possible medium-term scenarios - bearish that will lead us below the February low following trend line breakdown, and the bullish one in a form of medium-term double top pattern or a breakout towards 3,000 mark. The latter one is getting more and more real. The S&P 500 index seems to be "climbing a wall of worries" here:

Slightly Above 2,800

The index futures trade between -0.2% and -0.3% vs. their yesterday's closing price, so expectations before the opening of today's trading session are negative. The European stock market indexes have been mixed so far. Investors will wait for the economic data announcements today: Philadelphia Fed Manufacturing Index, Initial Claims at 8:30 a.m., Leading Indicators at 10:00 a.m. Investors will also wait for quarterly earnings release from Microsoft, among others. The S&P 500 index will probably extend its short-term fluctuations along the level of 2,800 today. There have been no confirmed negative signals. For now, it looks like a relatively flat correction within an uptrend.

The S&P 500 futures contract trades within an intraday downtrend following yesterday's intraday downward reversal. The market bounced off resistance level of around 2,815-2,820. On the other hand, the support level remains at 2,800-2,805. The next level of support is at 2,790, marked by the recent local low. The futures contract continues to trade slightly above 2,800 mark, as we can see on the 15-minute chart:

Nasdaq Also Lower

The technology Nasdaq 100 futures contract follows a similar path, as it retraces its yesterday's intraday advance. Is this a new short-term downtrend or just consolidation? The market is still around 1% below Tuesday's record high of 7,437. The nearest important level of support is at 7,350-7.380. The next support level is at around 7,300, among others. The Nasdaq futures contract backs off from the new record high, as the 15-minute chart shows:

Amazon at another New Record High, Apple Lags

Let's take a look at Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com). The stock slightly extended its advance last week, but it still trades at the resistance level of around $190-195. On the other hand, support level remains at around $185, marked by the previous level of resistance:

Now let's take a look at Amazon.com, Inc. stock (AMZN) daily chart. It reached another new record high yesterday at the price of $1,858.88. The bull market seems unstoppable here, but there are still negative medium-term technical divergences. However, there have been no confirmed negative signals so far:

Blue-Chip Stocks Continue Higher

The Dow Jones Industrial Average extended its short-term uptrend yesterday, following the recent breakout above the level of 25,000. The market gets closer to the early June topping pattern. And we may see some uncertainty there:

The S&P 500 index extended its short-term uptrend yesterday. So the broad stock market continues retracing its January's-February's sell-off. But will it reach new record highs? There have been no confirmed negative signals so far. However, we may see some short-term consolidation along the level of 2,800.

Concluding, the broad stock market will likely open slightly lower today. The S&P 500 index may fluctuate along the level of 2,800 for a while. Investors will wait for the economic data announcements along with quarterly earnings releases.

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
SunshineProfits.com

Stock market strategist, who has been known for quality of his technical and fundamental analysis since the late nineties. He is interested in forecasting market behavior based on both traditional and innovative methods of technical analysis. Paul has made his name by developing mechanical trading systems. Paul is the author of Sunshine Profits’ premium service for stock traders: Stock Trading Alerts.

* * * * *

Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Paul Rejczak Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in