Briefly: In our opinion, speculative short positions are favored (with stop‐loss at 2,140, and profit target at 1,980, 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): neutral
Long‐term outlook (next year): bullish
The U.S. stock market indexes lost 0.9‐1.1% on Friday, as investors reacted to quarterly earnings releases, economic data announcements. Our Friday's bearish intraday outlook has proved accurate. The S&P 500 index broke below the level of 2,100. The nearest important level of resistance is at around 2,090‐2,100. On the other hand, support level is at around 2,040‐2,060, marked by previous local lows. There have been no confirmed negative signals so far, however, we can see negative technical divergences:
Expectations before the opening of today's trading session are negative, with index futures currently down 0.4‐0.5%. The main European stock market indexes have lost between 0.2% and 1.4% so far. Investors will now wait for the Durable Orders number release at 7:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend. The nearest important level of support is at around 2,070, and resistance level is at 2,080, among others, as the 15‐minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues its short‐term downtrend. The nearest important level of resistance is at around 4,560, marked by local highs, as we can see on the 15‐minute chart:
Concluding, the broad stock market continues its short‐term downtrend, as investors react to quarterly earnings releases, economic data announcements. There have been no confirmed medium‐term negative signals so far. However, we continue to maintain our speculative short position (2,098.27, S&P 500 index), as we expect a medium‐term downward correction or an uptrend reversal. Stop‐loss is at 2,140, and potential profit target is at 1,980. 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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