S&P 500 At New Record High, Will It Continue Higher?

(MENAFN- Investors Ideas) September 28, 2017 (Investorideas.com Newswire) Intraday trade: Our Wednesday's intraday intraday outlook has proved partly accurate. The S & P 500 index closed 0.4% higher, but it gained less than 4 points from its opening price. The index may continue to fluctuate along the level of 2,500 today. It remains above support level of the September 12 daily gap up of 2,488.95-2,490.37. Therefore, we prefer to be out of the market, avoiding low risk/reward ratio trades.

Our intraday outlook is neutral today, and our short-term outlook is bearish, as we expect downward correction. Our medium-term outlook remains bearish:

Intraday outlook (next 24 hours): neutral

Short-term outlook (next 1-2 weeks): bearish

Medium-term outlook (next 1-3 months): bearish

The main U.S. stock market indexes gained between 0.3% and 1.2% on Wednesday, extending their short-term fluctuations, as investors reacted to economic data releases, tax cut plan announcement, among others. The S & P 500 index has reached new record high at the level of 2,511.75 before closing slightly below its previous all-time high. The Dow Jones Industrial Average remained slightly below last Thursday's new record high of 22,419.51. The technology Nasdaq Composite was relatively stronger than the broad stock market again. It reached new all-time high at the level of 6,472.55, as it got slightly above its last week's Monday's high. The nearest important level of resistance of the S & P 500 index remains at around 2,510, marked by record high. On the other hand, is still at 2,490, marked by the September 12 daily gap up of 2,488.95-2,490.37, among others. The next support level remains at 2,465-2,475, marked by the September 11 daily gap up of 2,467.11-2,474.52. The S & P 500 index continued its long-term uptrend, as it reached new record highs above the level of 2,500. It was gaining despite some short-term technical overbought conditions. The market is currently trading along new record highs, remaining within relatively narrow trading range, so those overbought conditions decrease. We still can see medium-term negative technical divergences, but will they lead to a downward correction?

Above 2,500 Mark

Expectations before the opening of today's trading session are virtually flat, with index futures currently between -0.05% and 0.0% vs. Wednesday's closing prices. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: the U.S. GDP number, Initial Claims, Trade Balance, Wholesale Inventories at 8:30 a.m. The market expects that the U.S. Gross Domestic Product grew 3.0% in the second quarter of 2017 (final number). The S & P 500 futures contract trades within an intraday consolidation, following yesterday's move up. The nearest important level of resistance is at around 2,510, marked by new record high. On the other hand, support level is at 2,500, and the next level of support remains at 2,485-2,490, marked by previous resistance level. The support level is also at 2,480, marked by short-term consolidation. The is slightly above 2,500 mark, as the 15-minute chart shows:

Nasdaq Also Higher

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades within an intraday consolidation after its yesterday's advance. The nearest important level of resistance is at 5,950-5,960, and the next resistance level is at 5,980-6,020. On the other hand, support level remains at around 5,900, marked by previous level of resistance, among others. The Nasdaq futures contract trades above almost three-day-long upward trend line, as we can see on the 15-minute chart:

Let's take a look at Apple, Inc. stock (AAPL) daily chart (chart courtesy of ). It rebounded following recent decline. The price bounced off support level at around $150 on Monday. But will it reverse its downtrend? Or is this just upward correction before another leg lower? There have been no confirmed positive signals so far:

Now, let's take a look at the Dow Jones Industrial Average daily chart (chart courtesy of ) again. The blue-chip index continues to fluctuate after its recent advance. It remains close to last Thursday's new record high. We can see some negative technical divergences, along with topping pattern:

Concluding, the S & P 500 index gained 0.4% on Wednesday, following a move to new record high at the level of 2,511.75. Overall, the market extended its short-term consolidation, as it closed slightly below its recent high. Is this a topping pattern or just another flat correction within an uptrend? Will the broad stock market retrace more of its September advance? We still can see medium-term overbought conditions along with negative technical divergences.

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. .

Thank you.

Paul Rejczak
Stock Trading Strategist

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.

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info:

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: . Global investors must adhere to regulations of each country.

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.