Stock Markets Extend Their Medium-Term Fluctuations, No Clear Direction Yet

By: Paul_Rejczak

Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains neutral, and our short-term outlook is neutral:

Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes lost 0.3-0.7% on Friday, retracing some of their recent move up, as investors reacted to economic data releases, among others. The S&P 500 index continues to trade along the level of 2,060. The nearest important level of support is at around 2,070-2,080. On the other hand, support level is at 2,050, marked by previous resistance level. The index remains within three-month long consolidation following last year's October-November rally, as we can see on the daily chart:

S&P500 Daily Chart

Expectations before the opening of today's trading session are negative, with index futures currently down 0.4%. The main European stock market indexes have lost between 0.5% and 1.3% so far. The S&P 500 futures contract (CFD) is in an intraday consolidation following Friday's move down. The nearest important level of resistance is at 2,045-2,00. On the other hand, support level is at 2,035-2,040. There is no clear short-term direction, as the 15-minute chart shows:

S&P500 15-Minute Chart

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,200. The nearest important resistance level is at 4,210-4,220. For now, it looks like a downward corection within a short-term uptrend:

NASDAQ 100 Futures 15-Minute Chart

Concluding, the broad stock market retraced some of its recent gains on Friday, as investors took profits off the table. 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
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

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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