Some Further Fluctuations As Indexes Remain Close To Record Highs - Which Direction Is Next?

November 6, 2014

Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook is 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 main U.S. stock market indexes were mixed between -0.1% and +0.6% on Wednesday, as investors continued to hesitate following recent move up. There is no clear short-term direction. For now, it looks like a flat correction within an uptrend. The S&P 500 index remains close to Monday’s all-time high of 2,024.46. The nearest important level of resistance is at around 2,020-2,025, and the support level is at 2,000, among others, as we can see on the daily chart:

stock market indexes

Expectations before the opening of today’s trading session are slightly negative, with index futures currently down 0.1-0.2%. The European stock market indexes have lost 0.2-0.4% so far. Investors will now wait for some further economic data announcements: Initial Claims, Productivity at 8:30 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, as it fluctuates along the level of 2,015. The nearest important resistance level is at 2,015-2,020, and level of support remains at 2,000-2,010, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is relatively weaker, as it bounced off the resistance level at around 4,170-4,180 yesterday. The nearest important level of support is at 4,130, marked by local lows. For now, it looks like a correction within a short-term uptrend:

Concluding, the broad stock market fluctuates following recent rally. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions which may lead to a downward correction at some point in time. 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.

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.

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