Stock Trading Alert originally published on April 16, 2015, 6:34 AM:
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is 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 gained between 0.4% and 0.6% on Wednesday, as investors reacted to quarterly corporate earnings releases. The S&P 500 index got closer to its February 25 all-time high of 2,119.59. The nearest important level of support is at around 2,080-2,090, marked by some previous local extremes. For now, it looks like further medium-term consolidation following October-November rally:
Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.1-0.2%. The main European stock market indexes have lost 0.4-1.0% so far. Investors will now wait for some economic data announcements: Initial Claims, Housing Starts, Building Permits at 8:30 a.m., Philadelphia Fed number at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend, as it retraces some of yesterday's move up. The nearest important level of resistance is at 2,100-2,105. On the other hand, support level is at 2,090, among others, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it retraces some of its yesterday's advance. The nearest important level of resistance is at around 4,430. On the other hand, support level is at 4,400, as the 15-minute chart shows:
Concluding, the broad stock market extended its short-term uptrend yesterday, as investors reacted to quarterly corporate earnings releases, economic data announcements. For now, it looks like further medium-term consolidation, following last year's October-November rally. 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.