Stock Trading Alert: Mixed Expectations Following Friday's Move Down

By: Paul Rejczak | Mon, Feb 2, 2015
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Stock Trading Alert originally published on February 2, 2015, 6:25 AM:


 

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 U.S. stock market indexes lost between 0.8% and 1.5% on Friday, as investors reacted to economic data announcements, quarterly corporate earnings releases. The S&P 500 index is at its support level of 1,990-2,000. On the other hand, level of resistance is at around 2,020-2,025, marked by recent local highs. It still remains within three-month long consolidation, as we can see on the daily chart:

S&P500 Daily Chart
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Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.2%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Personal Income, Personal Spending, PCE Prices - Core number at 8:30 a.m., ISM Index, Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, following Friday's decline. The nearest important level of support remains at around 1,980-1,985. On the other hand, resistance level is at 1,995-2,000, among others:

S&P500 15-Minute Chart
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The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,150. The nearest important level of support is at around 4,130, marked by Friday's local low, as the 15-minute chart shows:

NASDAQ100 Futures 15-Minute Chart
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Concluding, the broad stock market sold off on Friday, following some uncertainties, ending of the relatively volatile month, among others. It continues to look like a medium-term consolidation following last year's October-November rally, however, the index trades at this consolidation's lower limits. 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

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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