Stock Trading Alert originally sent to subscribers on January 26, 2015, 6:39 AM.
Briefly: In our opinion, no speculative
positions are justified.
Our
intraday outlook remains neutral, and our short-term outlook is neutral:
Intraday
(next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S.
stock market indexes were mixed between -0.8% and +0.2% on Friday, as investors
took some profits off the table following Thursday’s European Central Bank’s monetary
policy decision release. The S&P 500 index remains within its three-month
long consolidation, as it continues to trade along the level of 2,000. The
nearest important resistance level is at around 2,060-2,065, marked by previous
local highs. On the other hand, level of support is at 2,020, among others, as
we can see on the daily chart:
Expectations
before the opening of today’s trading session are negative, with index futures
currently down 0.2-0.4%. The main European stock market indexes have been mixed
so far. The S&P 500 futures contract (CFD) is in an intraday uptrend
following a lower opening. The nearest important support level remains at
around 2,025-2,030, and level of resistance is at 2,040, marked by Friday’s
local low. For now, it looks like a downward correction within a short-term
uptrend:
The
technology Nasdaq 100 futures contract (CFD) follows basically the same path,
as it trades along the level of 4,260. Resistance level remains at around
4,280-4,300, and the nearest important level of support is at 4,230, as the
15-minute chart shows:
Concluding,
the broad stock market retraced some of its earlier gains on Friday, as
investors took profits off the table. It still looks like a volatile
medium-term consolidation following last year’s October-November 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.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
