Stock Trading Alert originally sent to subscribers on November 24, 2014, 6:22 AM.
Briefly: In our opinion, speculative short
positions are favored (with stop-loss at 2,085 and profit target at 1,950,
S&P 500 index).
Our
intraday outlook is bearish, and our short-term outlook is bearish:
Intraday
(next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S.
stock market indexes gained between 0.2% and 0.5% on Friday, extending their
recent uptrend, as investors reacted to some better-than expected economic data
announcements. The S&P 500 index has managed to reach yet another new
all-time high at the level of 2,071.46. Potential resistance level is at around
2,080-2,100. On the other hand, the nearest important level of support is at 2,050-2,055,
marked by previous resistance level, and the next support level is at around
2,040. There have been no confirmed negative signals so far, however, we can
see overbought conditions accompanied by negative divergences:
Expectations
before the opening of today’s trading session are slightly positive, with index
futures currently up 0.2%. The main European stock market indexes have been mixed
so far. The S&P 500 futures contract (CFD) trades close to Friday’s
all-time high, as it fluctuates along the level of 2,065. The nearest important
resistance level is at around 2,070-2,075, and support level is at 2,050-2,055,
among others, as the 15-minute chart shows:
The
technology Nasdaq 100 futures contract (CFD) continues to fluctuate following
recent move up. The nearest important level of resistance is at around
4,280-4,300, and support level remains at 4,235-4,245, marked by previous
resistance level, as we can see on the 15-minute chart:
Concluding, the broad stock market continues its
long-term uptrend. There have been no confirmed negative signals so far. However,
we expect a downward correction or an uptrend reversal. Therefore, we continue
to maintain our speculative short position. Stop-loss is at 2,085 and potential
profit target is at 1,950 (S&P 500 index). 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.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
