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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…

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Stock Trading Alert: More Optimism Ahead Of Fed's Rate Decision Release

Stock Trading Alert originally published on September 17, 2015, 6:54 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): bearish
Long-term outlook (next year): bullish

The main U.S. stock market indexes gained between 0.5% and 0.9% on Wednesday, as investors awaited today's FOMC Rate Decision announcement. The S&P 500 index retraced some of its late August sell-off, however, it remains below the level of 2,000. The nearest important level of resistance is at 1,980--2,000. On the other hand, support level is at 1,950, and the next support level is at 1,900-1,920. There have been no confirmed positive signals so far. It still looks like an upward correction within a downtrend:

S&P500 Futures Daily Chart
Larger Image

Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.1-0.2%. The European stock market indexes have been mixed 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., FOMC Rate Decision release at 2:00 p.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation following recent move up. The nearest important level of resistance is at 1,990-2,000, and support level is at 1,970-1,980, as the 15-minute chart shows:

S&P500 Futures 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) trades within a similar intraday consolidation. The nearest important resistance level is at 4,380-4,400, and support level is at 4,350, among others, as we can see on the 15-minute chart:

NASDAQ100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market remains within a short-term uptrend following late August sell-off. However, there have been no confirmed positive signals so far. It looks like an upward correction within a medium-term downtrend. 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.

 

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