Stock Market No Clear Short-Term Direction - Topping Pattern?

By: Paul_Rejczak

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

Our intraday outlook is now 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 main U.S. stock market indexes lost 0.1-0.3% on Thursday, retracing some of their recent move up, as investors took short-term profits off the table. The S&P 500 index extends its medium-term consolidation following October rally. The nearest important level of resistance is at around 2,080-2,100. On the other hand, support level is at 2,000-2,020:

Expectations before the opening of today's trading session are negative, with index futures currently down 0.2-0.4%. The European stock market indexes have been mixed so far. The S&P 500 futures contract trades within an intraday downtrend, as it retraces some of its recent advance. The nearest important level of resistance is at 2,050-2,060. On the other hand, support level is at 2,020, among others, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades along the level of 4,600. The nearest important level of resistance is at around 4,630, and support level is at 4,580-4,600, as we can see on the 15-minute chart:

Concluding, the broad stock market remained within a short-term consolidation on Thursday. There have been no confirmed negative signals so far. The S&P 500 index extends its two-month long consolidation following October rally. We 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

Stock market strategist, who has been known for quality of his technical and fundamental analysis since the late nineties. He is interested in forecasting market behavior based on both traditional and innovative methods of technical analysis. Paul has made his name by developing mechanical trading systems. Paul is the author of Sunshine Profits’ premium service for stock traders: Stock Trading Alerts.

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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.

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