Stocks Suffered Some Further Losses Following FOMC Decision Release
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 main U.S. stock market indexes lost between 0.6% and 1.4% on Wednesday, as investors reacted to FOMC Rate Decision release, among others. The S&P 500 index got closer to the level of 2,000, retracing most of its recent gains. The nearest important level of support is at 1,990-2,000, marked by previous local lows. On the other hand, resistance level remains at 2,050-2,065. For now, the broad stock market trades within its medium-term consolidation, as we can see on the daily chart:
Expectations before the opening of today's trading session are positive, with index futures currently up 0.2-0.4%. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) is in a relatively narrow intraday consolidation, following yesterday's sell-off. The nearest important resistance level is at 2,000, and support level is at 1,985-1,990, marked by local low:
The technology Nasdaq 100 futures contract (CFD) is in a similar intraday consolidation, as it fluctuates above the level of 4,100. The nearest important level of resistance is at around 4,130-4,150, among others, as the 15-minute chart shows:
Concluding, the broad stock market extended its sell-off yesterday, retracing most of January's rebound. It continues to look like a volatile 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.
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.