Mixed Expectations Following Friday's Move Down
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes lost between 0.8% and 1.5% on Friday, as investors reacted to economic data announcements, quarterly corporate earnings releases. The S&P 500 index is at its support level of 1,990-2,000. On the other hand, level of resistance is at around 2,020-2,025, marked by recent local highs. It still remains within three-month long consolidation, as we can see on the daily chart:
Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.2%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Personal Income, Personal Spending, PCE Prices - Core number at 8:30 a.m., ISM Index, Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, following Friday's decline. The nearest important level of support remains at around 1,980-1,985. On the other hand, resistance level is at 1,995-2,000, among others:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,150. The nearest important level of support is at around 4,130, marked by Friday's local low, as the 15-minute chart shows:
Concluding, the broad stock market sold off on Friday, following some uncertainties, ending of the relatively volatile month, among others. It continues to look like a medium-term consolidation following last year's October-November rally, however, the index trades at this consolidation's lower limits. We still prefer to be out of the market, avoiding 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.