Stocks Extend Their Fluctuations - Which Direction Is Next?

September 15, 2015

Briefly: In our opinion, no speculative positions are justified

Our intraday outlook is 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): bearish

Long-term outlook (next year): bullish

The U.S. stock market indexes gained 0.5-0.6% on Friday, as investors continued to hesitate following late August sell-off. The S&P 500 index remains below the level of 2,000. The nearest important level of resistance is at around 1,980-2,000. On the other hand, support level is at 1,900-1,920, marked by local lows. There have been no confirmed positive signals so far. For now, it looks like a relatively flat correction within a downtrend:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.2-0.3%. The main European stock market indexes have gained 0.2-0.7% so far. The S&P 500 futures contract (CFD) trades within an intraday consolidation, as it fluctuates above Friday's closing price. The nearest important level of resistance is at 1,980-2,000, and support level is at 1,940-1,950, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,350. The nearest important resistance level is at 4,350-4,360, marked by local highs. On the other hand, support level is at 4,300, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market remains within a short-term consolidation following its late August sell-off. There have been no confirmed positive signals so far. 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.


Courtesy of

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.

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