Indexes May Open Higher As Investors’ Sentiment Improves
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes were mixed between -0.2% and +0.1% on Friday, as investors hesitated following Janet Yellen’s speech at Fed’s Jackson Hole Conference. Our Friday’s neutral intraday outlook has proved accurate. The S&P500 index remains close to its Thursday’s all-time of 1994.76, slightly below the level of 2000. The nearest important resistance level is at 1990-2000, and the level of support is at 1970, among others. There have been no confirmed negative signals so far, however, we can see some overbought conditions which may lead to a downward correction:
Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.2-0.3%. The main European stock market indexes have gained 0.9-1.0% so far. Investors will now wait for the New Home Sales data release at 10:00 a.m. This report indicates the level of new privately owned one-family houses sold and for sale. However, it is considered to be a lagging indicator of demand in the market. The S&P500 futures contract (CFD) trades close to its new intraday all-time high, just below the level of 2000. On the other hand, the level of support is at around 1980-1985, marked by recent local lows, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades just below its long-term high. The nearest important resistance level is at around 4080-4100, and the support level is at 4050-4060, among others, as the 15-minute chart shows:
Concluding, the broad stock market extends its uptrend, as the S&P500 index trades close to the level of 2000. There have been no confirmed negative signals so far. However, there are some negative technical divergences, accompanied by short-term overbought conditions. In our opinion, no speculative positions are justified. We still prefer to be out of the market , just to avoid low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.
Stock Trading Strategist
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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 is a 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.