gold investment, silver investment

Metals Market

Aug. 22 ($ / troy oz.)
  • SPDR Gold Shares (GLD ETF)

    -0.24 decrease 116.83
  • IShares Silver Trust (SLV ETF)

    0.00 no change 15.57
paul-rejczak

S&P 500 Still Close To Record High, Will Uptrend Continue?

September 7, 2017, 7:07 AM Paul Rejczak

Briefly:

Intraday trade: Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index fluctuated within a relatively narrow trading range of 10 points. The broad stock market index may extend its short-term consolidation today. Therefore, we prefer to be out of the market, avoiding low risk/reward ratio trades.

Our intraday outlook is neutral, 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 0.3% on Wednesday, extending their short-term fluctuations following last week's move up, as investors reacted to economic data announcements, among others. The S&P 500 index extends its over-month-long consolidation along the level of 2,450. It currently trades around 1% below the August 8 all-time high of 2,490.87. The Dow Jones Industrial Average trades along the level of 21,800, and the technology Nasdaq Composite index remains close to record high, as it trades along 6,400 mark. The nearest important level of resistance of the S&P 500 index is at around 2,470-2,475, marked by Tuesday's daily gap down of 2,471.97-2,473.85. The next resistance level is at 2,480-2,490, marked by recent local high and the above-mentioned August's record high. On the other hand, support level is at around 2,445, marked by Tuesday's daily low. The next level of support is at around 2.430-2,435, marked by previous daily gap up of 2,430.58-2,433.67 and last week's Wednesday's daily low. The broad stock market continues to trade within an over-month-long consolidation following November-July uptrend. Will it continue higher? Or is this some medium-term topping pattern before downward reversal?

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

Short-Term Uncertainty

Expectations before the opening of today's trading session are virtually flat, with index futures currently between -0.05% and +0.05% vs. their yesterday's closing prices. The European stock market indexes have gained 0.5-1.0% so far. Investors will now wait for some economic data announcements: Initial Claims, Productivity number at 8:30 a.m. The market expects that Productivity grew 1.3% in Q2, and Initial Claims were at 241,000 last week. The S&P 500 futures contract trades within an intraday consolidation, as it extends Wednesday's fluctuations following a rebound off support level at around 2,445-2,450. On the other hand, level of resistance is at 2,465-2,470, marked by some short-term local highs. The next resistance level is at 2,475-2,480. The futures contract trades within a short-term consolidation, as we can see on the 15-minute chart:

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

Nasdaq Close To Record High

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday consolidation. It fluctuates following Tuesday's sell-off and a rebound off support level. The nearest important level of resistance is at around 5,970-5,990, marked by recent consolidation. The next resistance level is at 6,000-6,020, marked by new record high. Will the tech stocks' market continue higher? Or is this some topping pattern before downward reversal?

Nasdaq100 futures contract - Nasdaq 100 index chart - NDX

Concluding, the S&P 500 index extended its short-term fluctuations on Wednesday, as it traded along the level of 2,460. Will the uptrend continue following last week's rebound off support level? There have been no confirmed short-term negative signals so far. However, we still can see some 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. Sign up now.

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts

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

Oct Market Overview

Gold Market Overview

In the last edition of the Market Overview, we focused on the economic rebound in the Eurozone and geopolitical threats from North Korea. In this issue of our report, we stay in Asia, as we will analyze the link between the Chinese currency and gold. We will also examine China’s role in the gold market, as well as the recent developments in the China’s economy. Last but not least, we will, as usual, provide investors with an update on recent fundamental drivers of the gold market, answering the question of how the medium-term outlook for the gold market has changed over the last quarter and what investors should expect in the last three months of the year.

Read more in the latest Market Overview report.

menu subelement hover background