Briefly: In our opinion, speculative short positions are favored (with stop-loss at 1,975 and profit target at 1,875, S&P 500 index).
Our intraday outlook is now 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 U.S stock market indexes gained 1.3-1.6% on Thursday, extending their recent move up as investors reacted to economic data announcements, quarterly corporate earnings releases. The S&P 500 index is within its late September – early October trading range, as it fluctuates along the level of 1,950. The nearest important level of resistance is at around 1,970-1,980, marked by previous local highs. On the other hand, the support level is at 1,925, and the next support level is at 1,900, as we can see on the daily chart:
Expectations
before the opening of today’s session are negative, with index futures
currently down 0.1-0.3%. The main European stock market indexes have lost
0.2-0.4% so far. Investors will now wait for the New Home Sale data
announcement at 10:00 a.m. The S&P 500 futures contract (CFD) extends its
short-term consolidation, as it trades along the level of 1,940. The nearest
important level of resistance is at around 1,950-1,955, marked by yesterday’s
local high. On the other hand, support level is at 1,920, among others:
The technology Nasdaq 100 futures contract (CFD) continues to fluctuate along the level of 4,000, following recent move up. The nearest important resistance level is at around 4,020-4,030, as the 15-minute chart shows:
Concluding, the broad stock market extended its recent move up, as investors reacted to some better-than-expected quarterly earnings releases. The S&P 500 index is within its late September – early October consolidation, testing resistance level. We expect short-term uptrend reversal. Therefore, we continue to maintain our speculative short position. Stop-loss level is at 1,975, and potential profit target is at 1,875 (S&P 500 index). It is important to set some exit price level in case some events cause the price to move in an unlikely direction. Having safety measures in place helps limit potential losses while letting gains grow.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
