Stock Trading Alert originally sent to subscribers on April 24, 2014, 6:59 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 lost between 0.1% and 0.9% yesterday, retracing some
of the recent move up, as investors decided to take profits off the table. The
S&P 500 index remains quite close to its April 4 all-time high of 1,897.28,
however, it continues to fluctuate along previous local highs. Our yesterday’s neutral outlook has proved accurate, as the broad market index has lost a mere
0.2%. The resistance is at 1,880-1,900, and the nearest important resistance
level is at around 1,840-1,850, marked by previous local lows. For now, it
looks like some further medium-term consolidation, following last year’s move
up, as we can see on the daily chart:
Expectations
before the opening of today’s session are positive, with index futures
currently up 0.3-1.5%, as investors react to yesterday’s quarterly earnings
report release from Apple Inc. The European stock market indexes have gained
0.7-1.0% so far. Investors will now wait for some economic data announcements:
Initial Claims, Durable Orders at 8:30 a.m. The S&P 500 futures contract (CFD)
trades in a relatively narrow intraday range, close to its short-term highs.
The resistance is at around 1,890-1,900, and the nearest important support level
is at 1,865-1,870, marked by yesterday’s lows, as the 15-minute chart shows:
The
technology Nasdaq 100 futures contract (CFD) remains in a short-term uptrend,
retracing more of its month-long decline. The resistance is at the
psychological level of 3,600. On the other hand, the support is at 3,540-3,550,
marked by yesterday’s lows. There have been no confirmed negative signals so
far:
Concluding,
the broad stock market continues to fluctuate within its medium-term
consolidation, as the S&P 500 index remains quite close to the early April
all-time high at around 1,900. We will wait for another opportunity to open a
trading position - at this time opening one doesn't seem justified from the
risk/reward point of view.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
