"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 44 mins 5 Big Drivers of Higher Inflation Rates Ahead
  • 2 hours U.S. And China To Face Off Over Aramco IPO
  • 5 hours Gold Bulls, Brace Yourselves – Fed Hikes Are Coming!
  • 8 hours Stocks Fail to Hold Gains, But Still No Correction
  • 10 hours Cryptojacking: A New Threat Vector To Critical Infrastructure
  • 1 day Why The Next Oil Boom Will Be Fueled By Blockchain
  • 1 day 5 Things Investors Should Know About China this New Year
  • 1 day Is The South Korean Crypto-Drama Finally Over?
  • 1 day Miners’ Rally? What Rally? Watch Out for More Fake Moves!
  • 1 day Four Percent 10-year Note Yield Will Be a Floor Not a Ceiling
  • 1 day The End Is Near
  • 2 days 5 Record Breaking Gemstones Even Billionaires Can’t Buy
  • 2 days Irredeemable Currency De-tooths Savers
  • 2 days CFTC Offers Bounty For Crypto Pump And Dump Whistleblowers
  • 2 days Have You Been Getting Run Over By This Stock Market Action?
  • 2 days Decision Time
  • 2 days 1 Week Later, Risk Remains ‘On’ as 2 of 3 Amigos Ride On
  • 3 days The Most Polarized Commodity Ever
  • 3 days Commodity Coins and Us: What To Expect From The "Tokenization of Everything"
  • 3 days U.S. Dollar Bull and Bear Markets
U.S. Dollar Bull and Bear Markets

U.S. Dollar Bull and Bear Markets

The idea of endlessly repeated…

Irredeemable Currency De-tooths Savers

Irredeemable Currency De-tooths Savers

An irredeemable currency system traps…

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…

More Info

Stock Trading Alert: Positive Expectations, Will Stocks Continue Higher?

Stock Trading Alert originally published on October 24,  2016, 6:52 AM:


 

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,210, and profit target at 2,050, S&P 500 index).

Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook is neutral, following S&P 500 index breakout above last year's all-time high:

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

The main U.S. stock market indexes were mixed between -0.3% and +0.3% on Friday, extending their short-term fluctuations, as investors reacted to economic data, quarterly corporate earnings releases. The S&P 500 index continues to trade close to its resistance level of 2,150. The next resistance level is at 2,170, among others. On the other hand, level of support is at 2,115-2,120, marked by previous local lows. The market continues to trade along medium-term upward trend line, as the daily chart shows:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's trading session are very positive, with index futures currently up 0.4-0.6%. The European stock market indexes have gained 0.1-0.8% so far. The S&P 500 futures contract trades within an intraday uptrend, following Friday's rebound off support level at around 2,120. The nearest important level of resistance is at 2,150-2,170, marked by previous consolidation. There have been no confirmed short-term negative signals so far.

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades closer to its all-time high at around 4,900. The nearest important resistance level is at 4,880-4,900. On the other hand, support level remains at 4,800-4,820, marked by some previous local lows, as we can see on the 15-minute chart:

NASDAQ100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market extended its short-term consolidation on Friday, as investors continued to hesitate following economic data, quarterly corporate earnings releases. We continue to maintain our speculative short position (opened on July 18th at 2,162, S&P 500 index). Stop-loss level is at 2,210 and potential profit target is at 2,050 (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




Don't Miss A Single Story