Stock Trading Alert originally sent to subscribers on February 5, 2015, 6:32 AM.

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 U.S. stock market indexes were mixed between -0.4% and 0.0% on Wednesday, as investors hesitated following recent move up. Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index remains within its three-month long consolidation, as it trades along the level of 2,050. The nearest important level of resistance is at around 2,060-2,065, marked by previous local highs. On the other hand, support level is at 2,020-2,025, marked by some previous short-term resistance level. There is no clear medium-term direction, as the daily chart shows:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.3-0.5%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data releases: Initial Claims, Trade Balance, Productivity at 8:30 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it retraces yesterday's decline. The nearest important resistance level remains at around 2,045-2,050, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) continues to trade along the level of 4,200. The nearest important level of resistance is at 4,220-4,240. For now, it looks like a flat correction within a short-term uptrend:

Concluding, the broad stock market remains within three-month long consolidation. There is also some short-term indecision. 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