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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…

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Stock Trading Alert: No Clear Short-Term Direction - Topping Pattern?

Stock Trading Alert originally published on December 28, 2015, 6:57 AM:


 

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

Our intraday outlook is now 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 lost 0.1-0.3% on Thursday, retracing some of their recent move up, as investors took short-term profits off the table. The S&P 500 index extends its medium-term consolidation following October rally. The nearest important level of resistance is at around 2,080-2,100. On the other hand, support level is at 2,000-2,020:

S&P500 Futures Daily Chart
Larger Image

Expectations before the opening of today's trading session are negative, with index futures currently down 0.2-0.4%. The European stock market indexes have been mixed so far. The S&P 500 futures contract trades within an intraday downtrend, as it retraces some of its recent advance. The nearest important level of resistance is at 2,050-2,060. On the other hand, support level is at 2,020, among others, as the 15-minute chart shows:

S&P500 Futures 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades along the level of 4,600. The nearest important level of resistance is at around 4,630, and support level is at 4,580-4,600, as we can see on the 15-minute chart:

NASDAQ 100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market remained within a short-term consolidation on Thursday. There have been no confirmed negative signals so far. The S&P 500 index extends its two-month long consolidation following October rally. 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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