• 695 days Will The ECB Continue To Hike Rates?
  • 695 days Forbes: Aramco Remains Largest Company In The Middle East
  • 697 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,097 days Could Crypto Overtake Traditional Investment?
  • 1,101 days Americans Still Quitting Jobs At Record Pace
  • 1,103 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,106 days Is The Dollar Too Strong?
  • 1,107 days Big Tech Disappoints Investors on Earnings Calls
  • 1,108 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,109 days China Is Quietly Trying To Distance Itself From Russia
  • 1,110 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,114 days Crypto Investors Won Big In 2021
  • 1,114 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,115 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,117 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,117 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,121 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,121 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,122 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,124 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Paul Rejczak

Paul Rejczak

Writer, Sunshine Profits

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…

Contact Author

  1. Home
  2. Markets
  3. Other

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

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
Larger Image

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
Larger Image

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.

 

Back to homepage

Leave a comment

Leave a comment