• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

Paul Rejczak

Paul Rejczak

Writer, Sunshine Profits

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…

Contact Author

  1. Home
  2. Markets
  3. Other

Stock Trading Alert: Stocks Retraced Last Week's Move Up As Investors' Sentiment Worsened

Stock Trading Alert originally published on October 8, 2014, 6:02 AM:


 

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 1,985 and profit target at 1,900, S&P 500 index)

Our intraday outlook is bearish, and our short-term outlook is bearish:

Intraday (next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes lost between 1.4% and 1.6% on Tuesday, retracing last week's rebound, as investors sold stocks ahead of economic data announcements, quarterly corporate earnings releases, among others. Our yesterday's intraday outlook has proved accurate. The S&P 500 index bounced off the resistance level at around 1,980-1,985, as it broke below the level of 1.950. The nearest important level of support is at 1,925-1,930, marked by last Thursday's daily low. There have been no confirmed positive signals so far, as we can see on the daily chart:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's session are virtually flat, with index futures currently down 0.1%. The main European stock market indexes have lost 0.6-0.9% so far. Investors will now wait for the FOMC Minutes release at 2:00 p.m., looking for hints regarding potential monetary policy changes. The S&P 500 futures contract (CFD) trades close to it local low, as it fluctuates along the level of 1,930. The nearest important resistance level is at around 1,930-1,935, and the level of support is at 1,915-1,920, marked by recent local low, as the 15-minute chart shows:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) follows a similar path as it trades closer to last week's local low, testing support level of 4,930-4,950. On the other hand, the level of resistance is at 3,980-4,000, among others:

NASDAQ100 15-Minute Chart
Larger Image

Concluding, the broad stock market retraced its recent move up and it may continue short-term downtrend. So, we remain bearish, expecting more downside. We continue to maintain our already profitable speculative short position with entry point at 2,000.5 - S&P 500 index. The stop-loss is at the level of 1,985. Potential profit target remains at 1,900 (S&P 500 index). It is always important to set some exit price level in case some events cause the price to move in the unlikely direction. Having safety measures in place helps limit potential losses while letting the gains grow.

Thank you.

 

Back to homepage

Leave a comment

Leave a comment