Stock Trading Alert: Positive Expectations Following Ukraine Cease-Fire Deal
Stock Trading Alert originally published on February 12, 2015, 6:17 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 were mixed between 0.0% and +0.4% on Wednesday, as investors remained uncertain following recent move up. Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index continues to fluctuate within its three-month long consolidation. The nearest important level of resistance is at around 2,080-2,100, marked by the December 29th all-time high of 2,093.55, among others. On the other hand, support level remains at 2,040-2,050, marked by recent local lows, as we can see on the daily chart:
Expectations before the opening of today's trading session are positive, with index futures currently up 0.5-0.6%. The European stock market indexes have gained 0.4-1.7% so far. Investors will now wait for some economic data announcements: Initial Claims, Retail Sales at 8:30 a.m., Business Inventories at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it reaches resistance level at around 2,075-2,080. On the other hand, level of support is at 2,050-2,060:
The technology Nasdaq 100 futures contract (CFD) continues its short-term uptrend, as it breaks above the level of 4,300. it remains relatively stronger than the broad stock market. The nearest important level of support is at 4,280-4,300, as the 15-minute chart shows:
Concluding, the broad stock market remains close to important medium-term resistance level, marked by last year's December all-time high. 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.