Stock Trading Alert: The Situation on the Broad Market Remains Tense as Companies Release Quarterly Earnings

Briefly: In our opinion no speculative positions are justified.

Our intraday outlook remains 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 main U.S. stock market indexes lost between 0.1% and 0.9% yesterday, retracing some of the recent move up, as investors decided to take profits off the table. The S&P 500 index remains quite close to its April 4 all-time high of 1,897.28, however, it continues to fluctuate along previous local highs. Our yesterday's neutral outlook has proved accurate, as the broad market index has lost a mere 0.2%. The resistance is at 1,880-1,900, and the nearest important resistance level is at around 1,840-1,850, marked by previous local lows. For now, it looks like some further medium-term consolidation, following last year's move up, as we can see on the daily chart:

Expectations before the opening of today's session are positive, with index futures currently up 0.3-1.5%, as investors react to yesterday's quarterly earnings report release from Apple Inc. The European stock market indexes have gained 0.7-1.0% so far. Investors will now wait for some economic data announcements: Initial Claims, Durable Orders at 8:30 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow intraday range, close to its short-term highs. The resistance is at around 1,890-1,900, and the nearest important support level is at 1,865-1,870, marked by yesterday's lows, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) remains in a short-term uptrend, retracing more of its month-long decline. The resistance is at the psychological level of 3,600. On the other hand, the support is at 3,540-3,550, marked by yesterday's lows. There have been no confirmed negative signals so far:

Concluding, the broad stock market continues to fluctuate within its medium-term consolidation, as the S&P 500 index remains quite close to the early April all-time high at around 1,900. We will wait for another opportunity to open a trading position - at this time opening one doesn't seem justified from the risk/reward point of view.

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Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' 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, Paul Rejczak 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. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s 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. Paul Rejczak, 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.