Stock Trading Alert originally sent to subscribers on December 22, 2014, 6:17 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 main
U.S. stock market indexes gained between 0.2% and 0.5% on Friday, extending
their recent rally, as investors continued to react to last week’s FOMC rate
decision release. The S&P 500 index got closer to its December 5th
all-time high of 2,079.47. The nearest important resistance level is at around
2,080. On the other hand, support level is at 2,050-2,060, among others. There
have been no confirmed negative signals so far, however, we can see some
short-term overbought conditions:
Expectations
before the opening of today’s trading session are positive, with index futures
currently up 0.3%. The European stock market indexes have gained 0.7-0.9% so
far. Investors will now wait for the Existing Home Sales number release at
10:00 a.m. The S&P 500 futures contract (CFD) trades close to last week’s
highs, as it fluctuates along the level of 2,070. The nearest important support
level is at around 2,055-2,060, as we can see on the 15-minute chart:
The
technology Nasdaq 100 futures contract (CFD) got closer to the level of 4,300,
as it retraced most of its previous decline. The nearest important level of
resistance remains at 4,300, as the 15-minute chart shows:
Concluding,
the broad stock market continued its rally on Friday, following a sharp rebound
off last week’s lows. We can see some short-term overbought conditions, however,
there have been no confirmed negative signals so far. Therefore, 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
