Stock Trading Alert: Stocks Got Close To All-Time Highs Following Fed’s Decision Release

Posted by Paul Craig Roberts via King World News

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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): neutral
Long-term outlook (next year): bullish

The main U.S. stock market indexes gained between 1.1% and 1.3% on Wednesday, extending their recent move up, as investors reacted to the Fed’s Decision release. The S&P 500 index got closer to its February 25 all-time high of 2,119.59, as it reached daily high at 2,106.85. The nearest important resistance level is at around 2,100-2,120. On the other hand, support level is at 2,080-2,090, marked by previous resistance level, as we can see on the daily chart:

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Expectations before the opening of today’s trading session are virtually flat. The European stock market indexes have gained 0.1% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Leading Indicators, Philadelphia Fed number at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, following yesterday’s rally. The nearest important level of resistance is at around 2,100, as the 15-minute chart shows:

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The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,420. The nearest important level of resistance is at around 4,420-4,430, marked by local highs. On the other hand, support level is at 4,400, among others:

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Concluding, the broad stock market retraced most of its March move down, as investors reacted to Fed’s Decision announcement. For now, it looks like some further medium-term consolidation, following last year’s October-November 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.