Negative Expectations Following Swiss National Bank Decision To Unpeg Its Currency
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains 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 lost between 0.5% and 1.1% on Wednesday, extending their short-term move down. However, the S&P 500 index bounced off support level at 1,990-2,000, as it remained within three-month long consolidation. The nearest important level of resistance is at around 2,020, marked by previous support level, as we can see on the daily chart:
Expectations before the opening of today’s trading session are negative, with index futures currently down 0.4-0.5%, as investors react to Swiss National Bank decision to remove its euro exchange cap. The main European stock market indexes have lost 0.2-0.6% so far. Investors will now wait for some economic data announcements: Initial Claims, Producer Price Index, Empire Manufacturing number at 8:30 a.m., Philadelphia Fed at 10:00 a.m. The S&P 500 futures contract (CFD) fluctuates following yesterday’s move down. The nearest important resistance level remains at around 2,020. On the other hand, support level is at 1,980, marked by local low. There is no clear short-term direction, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it extends its short-term fluctuations. Support level remains at around 4,090-4,100, and the nearest important level of resistance is at 4,180-4,200, among others:
Concluding, the broad stock market slightly extended its recent move down yesterday. However, there is still no clear short-term direction. For now, it looks like a volatile 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.