Stocks Suffered Some Further Losses Following FOMC Decision Release

Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains 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): neutral

Long-term outlook (next year): bullish

The main U.S. stock market indexes lost between 0.6% and 1.4% on Wednesday, as investors reacted to FOMC Rate Decision release, among others. The S&P 500 index got closer to the level of 2,000, retracing most of its recent gains. The nearest important level of support is at 1,990-2,000, marked by previous local lows. On the other hand, resistance level remains at 2,050-2,065. For now, the broad stock market trades within its medium-term consolidation, as we can see on the daily chart:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.2-0.4%. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) is in a relatively narrow intraday consolidation, following yesterday's sell-off. The nearest important resistance level is at 2,000, and support level is at 1,985-1,990, marked by local low:

The technology Nasdaq 100 futures contract (CFD) is in a similar intraday consolidation, as it fluctuates above the level of 4,100. The nearest important level of resistance is at around 4,130-4,150, among others, as the 15-minute chart shows:

Concluding, the broad stock market extended its sell-off yesterday, retracing most of January's rebound. It continues to look like a volatile medium-term consolidation following last year's October-November rally. We still prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.

Thank you.

Paul Rejczak

Stock Trading Strategist

Stock Trading Alerts

SunshineProfits.com

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