• 15 hours Do Gold Stocks Still Have Upside Potential?
  • 1 day The S&P 500’s Top Companies Hold $2.5 Trillion In Debt
  • 2 days Electric Vehicle Rebound Bolsters Battery Metal Growth
  • 2 days BlackRock Makes A Run On Asian Stocks
  • 3 days Gold Prices Surge Above $1,800
  • 3 days Chinese Stocks Soar On Bullish Economic Data
  • 4 days Apple’s “Holy Grail Of Data” Leaves Energy Traders Disappointed
  • 4 days Gold Rally Adds $250 Billion To Top 50 Miners' Market Cap
  • 4 days TikTok Is Becoming A New Battleground For Tech Politics
  • 5 days Peru's Mining Industry Pummeled As Coronavirus Cases Surge
  • 5 days Why The World Is So Divided In Its COVID-19 Response
  • 5 days Equities Cheer Stellar Jobs Report, But It May Be Fleeting
  • 6 days Is Tech Billionaire Peter Thiel Done With Trump?
  • 7 days Musk Takes To Twitter To Troll The SEC
  • 8 days Lunar Mining May Commence As Early As 2025
  • 8 days Immigration Will Go Bust Without $1.2B Bailout
  • 9 days The Economics Of The Space Race
  • 10 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 10 days How Much More Cash Can Uber Burn?
  • 11 days Inside The Biggest Counterfeit Gold Scandal In Recent History
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

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: Positive Expectations, As Investors' Sentiment Turns Bullish Ahead Of U.S. Elections

Stock Trading Alert originally published on November 7,  2016, 6:53 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 neutral, following S&P 500 index breakout above last year's all-time high:

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

The U.S. stock market indexes lost 0.2-0.4% on Friday, slightly extending their short-term downtrend, as investors reacted to economic data releases, U.S. presidential election uncertainty. The S&P 500 index broke below its September - October local lows last Tuesday. It is the lowest since early July. The nearest important support level is at around 2,075-2,090, marked by previous consolidation. The next important level of support is at 2,035-2,045, marked by the late June daily gap up. On the other hand, resistance level is at 2,100-2,120, and the next resistance level is at 2,150 marked by last month's local highs, as we can see on the daily chart:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's trading session are positive, as investors react to U.S. presidential election news, with index futures currently up 1.3-1.5%. The European stock market indexes have gained 1.6-1.8% so far. The S&P 500 futures contract trades within an intraday uptrend, as it sharply bounces off its Friday's lows, following today's daily gap up. The nearest important level of support is at around 2,080-2,100, marked by recent fluctuations. On the other hand, resistance level is at 2,120-2,140, marked by previous short-term consolidation:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures follows a similar path, as it currently trades within an intraday uptrend. The market retraces its recent move down. The nearest important level of resistance is at around 4,750-4,800. On the other hand, support level remains at 4,680-4,700, among others, as the 15-minute chart shows:

NASDAQ100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market slightly extended its short-term downtrend on Friday, as investors reacted to economic data releases, among others. We decided to close our profitable short position (opened on July 18 at 2,162 - S&P 500 index) at the opening of Friday's trading session - the average opening price of the S&P 500 index was at 2,085. Overall, we gained 77 index points on that over three-month-long speculative short trade following June - July rally off "Brexit" low. 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