Stock Trading Alert: Positive Expectations As Investors Bet On Reversal

By: Paul Rejczak | Mon, Mar 30, 2015
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Stock Trading Alert originally published on March 30, 2015, 6:30 AM:


 

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

Our intraday outlook is now 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 gained 0.2-0.4% on Friday, as they extended their short-term consolidation following recent move down. Our Friday's neutral intraday outlook has proved accurate. The S&P 500 index trades relatively close to its support level of 2,040-2,050, marked by early March local lows. On the other hand, level of resistance is at around 2,080-2,090, among others. There is no clear medium-term direction, 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 positive, with index futures currently up between 0.6% and 0.9%. The European stock market indexes have gained 0.5-1.4% so far. Investors will now wait for some economic data announcements: Personal Income, Personal Spending, PCE Prices-Core number at 8:30 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) is within an intraday uptrend, following Friday's uncertainty. The nearest important level of support remains at around 2,050-2,055, and resistance level is at 2,070-2,080:

S&P500 15-Minute Chart
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The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades above Friday's consolidation. The nearest important level of support is at 4,300-4,330, and resistance level is at around 4,390-4,400, as the 15-minute chart shows:

NASDAQ 100 Futures 15-Minute Chart
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Concluding, the broad stock market extended its short-term consolidation on Friday. For now, it looks like some further medium-term consolidation, following last year's October-November rally. 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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