Stock Trading Alert originally sent to subscribers on January 5, 2017, 6:56 AM.
Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,330, and profit target at 2,150, S&P 500 index).
Our intraday outlook remains 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 main U.S. stock market indexes gained between 0.3% and 0.6% on Wednesday, extending their short-term uptrend, as investors' sentiment remained bullish following Tuesday's rally. The S&P 500 index continues to trade relatively close to its December 13 all-time high of 2,277.53. For now, it looks like a flat correction within an uptrend off last year's early November low. But will the market extend its year-long uptrend even further before some more meaningful downward correction? The nearest important level of resistance remains at around 2,280, marked by record high, and the next resistance level is at 2,300 mark. On the other hand, support level is at 2,250, marked by recent resistance level. The next support level remains at 2,200-2,220. The index continues to trade along its medium-term upward trend line. It also trades within a few-week-long consolidation, as the daily chart shows:
Expectations before the opening of today's trading session are virtually flat, following yesterday's move up. The index futures are