Stock Trading Alert: Uncertainty Following Recent Decline

By: Paul Rejczak | Mon, Mar 17, 2014
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Stock Trading Alert originally published on Mar 17, 2014, 7:56 AM:


Our intraday outlook is now 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 0.3% and 0.7% on Friday, as investors continued to take profits, following February through early March rally, which sent indexes to new long-term highs. The S&P 500 has deepened its downward correction, moving away from the March 7 all-time high of 1,883.57. The nearest important support is at around 1,835-1,840, marked by some of the recent local lows. On the other hand, the resistance is at 1,850, and the next resistance is at around 1,860-1,865, as we can see on the daily chart:

S&P500 Daily Chart
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Expectations before the opening of today's session are positive, with index futures currently up 0.6-0.7%. The European stock market indexes have gained 0.4-0.7% so far. Investors will now wait for some economic data releases: Empire Manufacturing indicator at 8:30 a.m., Industrial Production, Capacity Utilization at 9:15 a.m., NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract (CFD) bounced off the support at around 1,830, as market sentiment improved following some positive news concerning Russia-Ukraine conflict. The nearest important resistance level is at around 1,850, as the 15-minute chart shows:

S&P500 15-Minute Chart
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The technology Nasdaq 100 futures contract (CFD) trades near the resistance level at around 3,650-3,660, following a quick rebound from the psychological support of 3,600. For now, it looks like a correction within short-term downtrend, however a downtrend reversal cannot be ruled out:

NASDAQ 100 Futures Chart
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Thank you.



Paul Rejczak

Author: Paul Rejczak

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts

Paul Rejczak

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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