• 5 hours Can The British Pound Overcome Brexit?
  • 11 hours Is A Gold Breakout Near?
  • 1 day Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 1 day Disney Beats Out Comcast In $71.3B Mega-Merger
  • 1 day The Feds Continue To Prop Up Equities Markets
  • 2 days Bejing's Sway In South China Sea Is Fading
  • 2 days Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 2 days Airbnb In Acquisition Mode Ahead Of IPO
  • 2 days Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 3 days Champagne Sales Slow As European Economic Worries Grow Louder
  • 3 days Putin Signs “Digital Iron Curtain” Into Law
  • 3 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 3 days Tesla Looks To Jump Into Indian Market
  • 4 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 4 days Homeowners Experiment With Risky New Investment Trend
  • 4 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 4 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 5 days Ford CEO Gets Raise After Massive Layoff Round
  • 5 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 5 days Where To Look As Gold Miners Inch Higher
The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

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: SP500 Gets Back Above 2,050 Mark, As Investors Shrug Off Brexit News

Stock Trading Alert originally published on June 30, 2016, 6:54 AM:


 

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

Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:

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): neutral

The main U.S. stock market indexes gained between 1.6% and 1.7% on Wednesday, extending their short-term uptrend, as investors reacted to some economic data releases, among others. The S&P 500 index retraced most of its recent "Brexit" move down, as it broke above resistance level of 2,050. The nearest important level of support is at around 2,040, marked by yesterday's daily gap up of 2,036.09-2,042.69. The next support level is at 2,000. On the other hand, resistance level is at around 2,080-2,100, marked by recent consolidation. The next level of resistance remains at 2,110-2,120, marked by this month's local highs. Last year's highs along the level of 2,100 continue to act as medium-term resistance level. Is this some long-term topping pattern or just medium-term consolidation following a rebound off February low?

S&P500 Futures Daily Chart
Larger Image

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.2%. The European stock market indexes have gained 0.1-0.6% so far. Investors will now wait for some economic data releases: Initial Claims at 8:30 a.m., Chicago PMI number at 9:45 a.m. The S&P 500 futures contract trades within an intraday consolidation, as it currently fluctuates along the level of 2,070. The nearest important level of support is at 2,055-2,060, and the next support level remains at 2,030, marked by short-term consolidation. On the other hand, resistance level is at around 2,100-2,120, as we can see on the 15-minute chart:

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 4,360, following a rebound off support level at around 4,330-4,350. The nearest important level of resistance is at 4,370-4,380, marked by local highs, as the 15-minute chart shows:

NASDAQ100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market retraced most of its recent move down yesterday, as investors shrugged off "Brexit" news. For now, it looks like an upward correction following recent selloff. We decided to close our speculative short position (opened on June 1 at 2,093.94 - S&P 500 index) at the opening of last week's Friday's trading session - the average opening price of the S&P 500 index was at 2,060. Overall, we gained around 34 index points on that trade. Currently, 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