Stock Trading Alert: Indexes At Record Highs Following Economic Data Announcements

By: Paul Rejczak | Mon, Nov 3, 2014
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Stock Trading Alert originally published on November 3, 2014, 6:42 AM:


 

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 gained between 1.1% and 1.4%, extending their uptrend, as investors reacted to the Bank of Japan stimulus program announcement. The S&P 500 index got very close to the September 19th all-time high of 2,019.26. The nearest important resistance level is at around 2,020, marked by an all-time high. On the other hand, the level of support is at 2,000, among others. There have been no confirmed negative signals so far, however, we can see some short-term overbought conditions:

S&P500 Daily Chart
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Expectations before the opening of today's trading session are virtually flat, with index futures currently down 0.1%. The European stock market indexes have lost 0.1-0.3% so far. Investors will now wait for some economic data announcements: ISM Index, Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, as it trades close to all-time high. The nearest important level of resistance is at around 2,010-2,015, and the support level is at 2,000, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
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The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it moves along the level of 4,150. The nearest important level of resistance seems to be at 4,160-4,170. There have been no confirmed negative signals so far, as the 15-minute chart shows:

NASDAQ 100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market extended its uptrend, following better-than-expected economic data releases. 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. 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

Author: Paul Rejczak

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
SunshineProfits.com

Paul Rejczak

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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