Stock Trading Alert originally sent to subscribers on October 20, 2014, 6:42 AM.
Briefly: In our opinion, no speculative
positions are justified at this moment.
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 U.S.
stock market indexes gained between 1.3% and 1.6% on Friday, retracing some of their
last week’s losses, as investors hunted bargains following relatively sharp
downward correction. The S&P 500 index bounced off the support level of
1,800-1,820, marked by previous medium-term lows. On the other hand, the
nearest important level of resistance is at 1,900-1,910, marked by previous support
level, among others. For now, it looks like an upward correction within a
short-term downtrend, as there have been no confirmed downtrend reversal
signals so far:
Expectations
before the opening of today’s trading session are slightly positive, with index
futures currently up 0.2-0.3%. The main European stock market indexes have lost
0.8-1.0% so far. The S&P 500 futures contract (CFD) is in a short-term consolidation,
as it fluctuates following Friday’s move up. The nearest important resistance
level is at around 1,890-1,900, marked by some previous levels of support, as
we can see on the 15-minute chart:
The
technology Nasdaq 100 futures contract (CFD) trades along the level of 3,800,
following a rebound off last week’s lows. The support level is at around
3,770-3,780, among others. For now, it looks like an upward correction within a
short-term downtrend, as the 15-minute chart shows:
Concluding,
the broad stock market bounced off sharply, following recent move down. There
are still some short-term oversold conditions which may lead to an upward correction
or downtrend reversal. We prefer to be out of the market at this moment, as we
expect more short-term volatility. 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
