Stocks Fluctuate As Investors Await Earnings Reports Releases - Which Direction Is Next?

April 9, 2015

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 gained between 0.2% and 0.7% on Wednesday, as investors reacted to the FOMC Minutes release. The S&P 500 index extended its short-term fluctuations following recent advance. The nearest important level of resistance is at around 2,080-2,090, marked by previous local extremes. On the other hand, support level remains at 2,040-2,050. There is no clear medium-term direction, as we can see on the daily chart:

Expectations before the opening of today's trading session are negative, with index futures currently down 0.3-0.4%. The main European stock market indexes have gained 0.3-0.6% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Wholesale Inventories at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday downtrend, as it retraces some of its yesterday's move up. The nearest important level of resistance is at around 2,080, and support level is at 2,060, among others:

The technology Nasdaq 100 futures contract (CFD) retraces some of yesterday's move up, however, it remains relatively stronger than the broad stock market. The nearest important resistance level is at around 4,380-4,400. On the other hand, support level is at 4,320-4,330, as the 15-minute chart shows:

Concluding, the broad stock market continues to fluctuate following Monday's move up. There has been no clear short-term direction so far. For now, it looks like further medium-term consolidation, following last year's October-November rally. 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.

Thank you.

Paul Rejczak

Stock Trading Strategist

Stock Trading Alerts

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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.

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