Briefly: In our opinion, no speculative positions are justified at this moment.
Our intraday outlook is 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 between 1.3% and 1.6% on Friday, retracing some of their last week’s losses, as investors hunted bargains following relatively sharp downward correction. The S&P 500 index bounced off the support level of 1,800-1,820, marked by previous medium-term lows. On the other hand, the nearest important level of resistance is at 1,900-1,910, marked by previous support level, among others. For now, it looks like an upward correction within a short-term downtrend, as there have been no confirmed downtrend reversal signals so far:
Expectations before the opening of today’s trading session are slightly positive, with index futures currently up 0.2-0.3%. The main European stock market indexes have lost 0.8-1.0% so far. The S&P 500 futures contract (CFD) is in a short-term consolidation, as it fluctuates following Friday’s move up. The nearest important resistance level is at around 1,890-1,900, marked by some previous levels of support, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) trades along the level of 3,800, following a rebound off last week’s lows. The support level is at around 3,770-3,780, among others. For now, it looks like an upward correction within a short-term downtrend, as the 15-minute chart shows:
Concluding, the broad stock market bounced off sharply, following recent move down. There are still some short-term oversold conditions which may lead to an upward correction or downtrend reversal. We prefer to be out of the market at this moment, as we expect more short-term volatility. We will let you know when we think it is safe to get back in the market.
All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and 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, Przemyslaw Radomski, CFA 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. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA 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. Przemyslaw Radomski, CFA, 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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