Stock Trading Alert originally sent to subscribers on November 10, 2014, 6:27 AM.
Briefly: In our opinion, no speculative
positions are justified.
Our
intraday outlook is 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 were virtually flat on Friday, as investors continued
to hesitate following recent advance, despite some important economic data
releases. Our Friday’s neutral intraday outlook has proved accurate. However, the
S&P 500 index has managed to reach yet another new all-time high at the
level of 2,034.26. The nearest important level of resistance is at around 2,030-2,035.
On the other hand, the support level is at 2,020, marked by previous high, and
the next support level is at around 2,000. There have been no confirmed
negative signals so far, however, we can see some overbought conditions which
may lead to a downward correction:
Expectations
before the opening of today’s trading session are slightly positive, with index
futures currently up 0.1-0.2%. The European stock market indexes have gained
0.3-0.5% so far. The S&P 500 futures contract (CFD) trades along the level
of 2,025. The nearest important resistance level remains at around 2,035, and support
level is at 2,020, among others:
The
technology Nasdaq 100 futures contract (CFD) extends its short-term
consolidation, as it fluctuates along the level of 4,160. The resistance level
is at 4,180, marked by local highs, and support level remains at 4,120-4,140,
as we can see on the 15-minute chart:
Concluding,
the broad stock market extends its short-term consolidation, following recent
move up. There have been no confirmed negative signals so far. However, we can
see some short-term overbought conditions which may lead to a downward correction
at some point in time. We still 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
