Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,120 and profit target at 1,990, S&P 500 index)
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes lost 0.7-0.8% on Wednesday, retracing some of their recent move up, as investors took short-term profits off the table. The S&P 500 index continues to trade within two-month long consolidation following October rally. The nearest important level of resistance is at around 2,080-2,100, marked by previous local highs. On the other hand, support level is at 2,050, and the next important level of support is at 2,000-2,020, marked by local lows:
_20151231125656.png "stocks chart")
Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have lost 0.3-1.1% so far. Investors will now wait for economic data announcements: Initial Claims at 8:30 a.m., Chicago PMI at 9:45 a.m. The S&P 500 futures contract trades within an intraday consolidation, as it fluctuates along the level of 2,055. The nearest important level of support is at around 2,050, as the 15-minute chart shows:
_20151231125834.png "S&P500 chart")
The technology Nasdaq 100 futures contract follows a similar path, as it currently trades along the level of 4,650. The nearest important level of resistance is at around 4,660-4,680. On the other hand, support level remains at 4,640-4,650, as we can see on the 15-minute chart:
_20151231125918.png "NASDAQ chart")
Concluding, the broad stock market retraced some of its recent move up, as investors took short-term profits off the table. There have been no confirmed short-term negative signals so far. However, we can see some overbought conditions. Therefore, we continue to maintain our speculative short position (2,077.34, S&P 500 index). We expect a downward correction or short-term uptrend reversal. Stop-loss is at 2,120 and potential profit target is at 1,990. You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. 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.
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes lost 0.7-0.8% on Wednesday, retracing some of their recent move up, as investors took short-term profits off the table. The S&P 500 index continues to trade within two-month long consolidation following October rally. The nearest important level of resistance is at around 2,080-2,100, marked by previous local highs. On the other hand, support level is at 2,050, and the next important level of support is at 2,000-2,020, marked by local lows:
Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have lost 0.3-1.1% so far. Investors will now wait for economic data announcements: Initial Claims at 8:30 a.m., Chicago PMI at 9:45 a.m. The S&P 500 futures contract trades within an intraday consolidation, as it fluctuates along the level of 2,055. The nearest important level of support is at around 2,050, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract follows a similar path, as it currently trades along the level of 4,650. The nearest important level of resistance is at around 4,660-4,680. On the other hand, support level remains at 4,640-4,650, as we can see on the 15-minute chart:
Concluding, the broad stock market retraced some of its recent move up, as investors took short-term profits off the table. There have been no confirmed short-term negative signals so far. However, we can see some overbought conditions. Therefore, we continue to maintain our speculative short position (2,077.34, S&P 500 index). We expect a downward correction or short-term uptrend reversal. Stop-loss is at 2,120 and potential profit target is at 1,990. You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. 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.
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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