Stocks Fluctuate Following Recent Move Up As Investors Take Some Short-Term Profits
Stock-Markets / Stock Markets 2015 Jan 26, 2015 - 03:24 PM GMTBy: Paul_Rejczak
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 U.S. stock market indexes were mixed between -0.8% and +0.2% on Friday, as investors took some profits off the table following Thursday's European Central Bank's monetary policy decision release. The S&P 500 index remains within its three-month long consolidation, as it continues to trade along the level of 2,000. The nearest important resistance level is at around 2,060-2,065, marked by previous local highs. On the other hand, level of support is at 2,020, among others, as we can see on the daily chart:
Expectations before the opening of today's trading session are negative, with index futures currently down 0.2-0.4%. The main European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) is in an intraday uptrend following a lower opening. The nearest important support level remains at around 2,025-2,030, and level of resistance is at 2,040, marked by Friday's local low. For now, it looks like a downward correction within a short-term uptrend:
The technology Nasdaq 100 futures contract (CFD) follows basically the same path, as it trades along the level of 4,260. Resistance level remains at around 4,280-4,300, and the nearest important level of support is at 4,230, as the 15-minute chart shows:
Concluding, the broad stock market retraced some of its earlier gains on Friday, as investors took profits off the table. It still looks like a volatile medium-term consolidation following last year's October-November rally. 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.
Paul RejczakStock Trading Strategist
Stock Trading Alerts
SunshineProfits.com
Stock market strategist, who has been known for quality of his technical and fundamental analysis since the late nineties. He is interested in forecasting market behavior based on both traditional and innovative methods of technical analysis. Paul has made his name by developing mechanical trading systems. Paul is the author of Sunshine Profits’ premium service for stock traders: Stock Trading Alerts.
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Disclaimer
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