Stock Trading Alert originally sent to subscribers on November 28, 2014, 6:40 AM.
Briefly: In our opinion, speculative short
positions are favored (with stop-loss at 2,085 and profit target at 1,950,
S&P 500 index).
Our
intraday outlook is bearish, and our short-term outlook is bearish:
Intraday
(next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The main U.S.
stock market indexes gained between 0.1% and 0.7% on Wednesday, extending their
short-term consolidation, as investors continued to hesitate ahead of a long holiday weekend. The S&P 500 index
remains close to Tuesday’s all-time high of 2,074.21, as it moves along the
level of 2,070. Possible resistance level is at around 2,085-2,100. On the
other hand, the nearest important level of support is at 2,060-2,065, marked by
recent local lows, and the next support level is at around 2,050-2,055, marked
by November 21st daily gap up of 2,053.8-2,056.8, among others.
There have been no confirmed negative signals so far, however, we can see
overbought conditions accompanied by negative technical divergences:
Expectations
before the opening of today’s trading session are mixed, with index futures currently
between -0.2% and +0.2%. The European stock market indexes have lost 0.4-0.7%
so far. The S&P 500 futures contract (CFD) retraced some of this week’s move
up, as it bounced off resistance level at around 2,070-2,075. The nearest
important level of support is at around 2,060-2,065, marked by recent local
lows, as we can see on the 15-minute chart:
The
technology Nasdaq 100 futures contract (CFD) is relatively stronger, as it
trades close to long-term highs. The nearest important level of resistance is
at around 4,330, marked by recent high, and support level is at 4,300-4,310,
among others, as the 15-minute chart shows:
Concluding,
the broad stock market is in a short-term consolidation, as it moves along
record highs. There have been no confirmed negative signals so far. However, we
still expect a downward correction or an uptrend reversal. Therefore, we continue
to maintain our speculative short position. Stop-loss is at 2,085 and potential
profit target is at 1,950 (S&P 500 index). It is always important to set
some exit price level in case some events cause the price to move in the
unlikely direction. Having safety measures in place helps limit potential
losses while letting the gains grow.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
