"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 6 hours The FANG Stock Investors Should Avoid
  • 1 day Is This The Death Of The iPhone X?
  • 1 day Is London Still The Financial Capital Of The World?
  • 1 day Is Gold Staging A Comeback?
  • 1 day The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 1 day Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 1 day Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 2 days Is Silver Poised For A Massive Break Out?
  • 2 days Meet The Hedge Fund Billionaires Club
  • 2 days The Next Housing Crisis Could Be Right Around The Corner
  • 2 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 2 days Africa’s Fastest Growing Economy
  • 2 days The Blockchain Boom Hits The Utilities Sector
  • 2 days Why Smart Money Is Selling Off Right Before The Bell
  • 3 days Tech Giants Rally Ahead Of Earnings Reports
  • 3 days Global Debt Hits 225% Of GDP
  • 3 days The World’s First Trillionaire Will Be A Space Miner
  • 3 days How Student Debt Could Cause The Next Real Estate Crisis
  • 3 days This $550 Billion Industry Is Betting On Bitcoin
  • 3 days One Commodity Set To Soar On Russian Sanctions
Oligarch Risk: The New Red Flag For Investors

Oligarch Risk: The New Red Flag For Investors

Investors are scrambling to diversify…

3 Stocks to Watch This Earnings Season

3 Stocks to Watch This Earnings Season

Stocks began Friday with a…

Paul Rejczak

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…

More Info

Stock Trading Alert: No Clear Short-Term Direction As Investors Take Some Profits Following Recent Advance

Stock Trading Alert originally published on October 30, 2014, 7:18 AM:


 

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

Our intraday outlook is now 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 U.S stock market indexes lost 0.2-0.4% on Wednesday, following quite volatile trading session, as investors reacted to FOMC Rate Decision release. Our yesterday's neutral intraday outlook has proved accurate. However, the S&P 500 index extended its short-term uptrend slightly, as it got closer to the level of 2,000. The nearest important resistance level is at around 2,000-2,020, marked by September 19th all-time high of 2,019.26, among others. On the other hand, the level of support remains at 1,870-1,880, marked by previous resistance level. 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:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's trading session are negative, with index futures currently down 0.3-0.5%. The main European stock market indexes have lost 0.8-1.6% so far. Investors will now wait for some economic data announcements: Initial Claims, GDP – Advance number at 8:30 a.m. The S&P 500 futures contract (CFD) is in a short-term consolidation, as it fluctuates along the level of 1,970. The level of resistance is at around 1,980-1,985, and the nearest support level is at 1,960, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) retraced some of its recent move up, as it bounced off the resistance level at 4,100. The nearest important level of support is at around 4,050, as the 15-minute chart shows:

NASDAQ 100 15-Minute Chart
Larger Image

Concluding, the broad stock market extended its short-term consolidation, following the FOMC Decision announcement. 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.

 

Back to homepage

Leave a comment

Leave a comment