Stock Alert originally sent to subscribers on January 22, 2015, 6:35 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 U.S.
stock market indexes gained 0.2-0.5% on Wednesday, extending their short-term
move up, as investors reacted to quarterly corporate earnings releases,
economic data announcements, among others. The S&P 500 index remains above
the level of 2,000, which is positive. The nearest important resistance level
is at around 2,030-2,050, marked by previous consolidation. On the other hand,
level of support is at 1,990-2,000, marked by this month’s local lows, as we
can see on the daily chart:
Expectations
before the opening of today’s trading session are positive, with index futures
currently up 0.2-0.3%. The main European stock market indexes have been mixed
between -0.3% and +0.3% so far, ahead of ECB policy decision announcement.
Investors will also wait for some economic data releases: Initial Claims at
8:30 a.m., FHFA Housing Price Index at 9:00 a.m. The S&P 500 futures
contract (CFD) is in an intraday uptrend, as it trades along the level of
2,030. The nearest important level of support is at 2,015-2,020, marked by
recent local lows:
The
technology Nasdaq 100 futures contract (CFD) is slightly below the level of
resistance at 4,200. On the other hand, support level remains at around 4,150-4,170.
There have been no confirmed short-term negative signals so far, as technology
stocks remain in a rebound-mode:
Concluding,
the broad stock market slightly extended its short-term move up on Wednesday,
as the S&P 500 index got closer to the level of resistance at 2,030-2,050. For
now, it 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.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
