• 21 hours How Big A Threat Is Climate Change To The Global Economy?
  • 2 days $120,000 Banana Gets Eaten At Art Basel
  • 3 days The Fastest Growing Energy Sectors Of 2019
  • 4 days How To Spy On Yourself: The Doorbell To End Civil Liberties
  • 5 days Analyst Predicts Tesla Stock Will Soar To $500
  • 6 days Australian Billionaire To Invest In $88 Million Struggling Solar Project
  • 7 days Twitter-Shaming: The Biggest Threat To Any Business
  • 7 days Canada Looks To Become A Major Source For Critical Minerals
  • 7 days Hedge Funds Are Piling Into This Key Commodity
  • 9 days Trade Deal Not Likely Before Christmas 2020
  • 9 days America's $16 Trillion Debt Bubble Is About To Burst
  • 10 days Black Friday Breaks Online Shopping Records
  • 10 days Tesla's Biggest Competitor Is Hiding In Plain Sight
  • 11 days Are Celebrities Good Or Bad For Cannabis Stocks?
  • 12 days Venezuela’s Crisis Continues As Maduro Spends $5 Billion On Oil Deals
  • 13 days Elon Musk Claims 250,000 Orders For Cybertruck
  • 14 days How To Survive Thanksgiving Politics With Cannabis Gravy
  • 15 days The Fragility Of Monetary Policy
  • 16 days 5 Oligopoly Stock Picks For Your 2020 Portfolio
  • 16 days $7 Trillion In Unfunded U.S. Pensions As Domestic Debt Hits A Record High
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

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: Investors' Sentiment Continues To Improve, But Will It Last?

Stock Trading Alert originally published on November 19, 2015, 6:57 AM:


 

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,140 and profit target at 1,990, S&P 500 index)

Our intraday outlook is bearish, and our short-term outlook is bearish:

Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish

The U.S. stock market indexes gained between 1.4% and 1.9%, extending their recent short-term uptrend, as investors reacted to Fed Minutes data release. The S&P 500 index got closer to 2,100 mark, as it broke above the resistance level 2,080. The next important level of resistance is at around 2,130, marked by late May all-time high. On the other hand, support level remains at 2,020-2,050:

S&P500 Futures Daily Chart
Larger Image

Expectations before the opening of today's trading session are positive, with index futures currently up 0.2-0.3%. The European stock market indexes have gained 0.9-1.7% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Philadelphia Fed, Leading Indicators at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it extends yesterday's advance. The nearest important level of resistance is at around 2,100, and support level is at 2,080, among others, as the 15-minute chart shows:

S&P500 Futures 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues short-term uptrend. The nearest important level of support is at 4,650, and resistance level is at 4,700-4,730, marked by record highs, as we can see on the 15-minute chart:

NASDAQ 100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market extended its short-term rally on Wednesday, as investors reacted to Fed's data release. Despite recent rally, there have been no confirmed positive signals so far. Therefore, we continue to maintain our speculative short position (2,088.35, S&P 500 index). Stop-loss is at 2,140 and potential profit target is at 1,990 (S&P 500 index). You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. It is always important to set some exit price level in case some events cause the price to move in the unlikely direction. Having safety measures in place helps limit potential losses while letting the gains grow.

Thank you.

 

Back to homepage

Leave a comment

Leave a comment