More Short-Term Uncertainty As Investors Await Quarterly Earnings Releases
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is now 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 0.4-0.5% on Wednesday, retracing their Monday's move up, as investors reacted to worse-than-expected economic data announcements. The S&P 500 index remains close to support level of 2,040-2,050, marked by previous local lows. On the other hand, level of resistance is at around 2,080-2,090. For now, it looks like some further fluctuations within a medium-term consolidation following October-November rally:
Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.3-0.4%. The European stock market indexes have been virtually flat so far. Investors will now wait for some economic data announcements: Challenger Job Cuts report at 7:30 a.m., Initial Claims, Trade Balance at 8:30 a.m., Factory Orders at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend, as it extends its short-term consolidation along the level of 2,050. The nearest important level of support remains at around 2,030-2,040, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) continues to trade along the level of 4,300. The nearest important level of resistance is at 4,320-4,330, marked by some recent local highs. On the other hand, support level is at 4,260,4,280, marked by local lows, as we can see on the 15-minute chart:
Concluding, the broad stock market continues to trade within a short-term consolidation, as investors remain uncertain ahead of Friday's monthly jobs report announcement, quarterly corporate earnings releases. For now, it looks like further medium-term consolidation, following last year's October-November rally. We 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.