Briefly: In our opinion, no speculative positions are justified
Our intraday outlook is 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): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes gained 3.9-5.1% on Wednesday, retracing some of their recent move down, as investors reacted to global stock exchanges rebound. The S&P 500 index remains within a volatile short-term trading range, following its 200-points sell-off. The nearest important level of resistance is at around 1,950, and support level is at 1,870-1,900. There have been no confirmed positive signals so far:
Expectations before the opening of today's trading session are positive, with index futures currently up 1.2-1.5%. The main European stock market indexes have gained 2.3-3.2% so far. Investors will now wait for some economic data announcements: Initial Claims, GDP - Second Estimate at 8:30 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it extends its yesterday's advance. The nearest important level of support is at around 1,900-1,930, and resistance level is at 1,970-2,000, among others, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades higher this morning. The nearest important level of resistance is at around 4,300. On the other hand, support level remains at 4,200, as we can see on the 15-minute chart:
Concluding, the broad stock market retraced some of its recent move down yesterday, however, it still trades within a volatile short-term consolidation, following relatively large sell-off. Our late April's short position's (2,098.27, S&P 500 index) profit target has been reached at the level of 1,980. Overall, we gained almost 120 index points on that pre-planned trade. We prefer to be out of the market at this moment, avoiding low risk/reward ratio trades. 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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