• 528 days Will The ECB Continue To Hike Rates?
  • 529 days Forbes: Aramco Remains Largest Company In The Middle East
  • 530 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 930 days Could Crypto Overtake Traditional Investment?
  • 935 days Americans Still Quitting Jobs At Record Pace
  • 937 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 940 days Is The Dollar Too Strong?
  • 940 days Big Tech Disappoints Investors on Earnings Calls
  • 941 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 943 days China Is Quietly Trying To Distance Itself From Russia
  • 943 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 947 days Crypto Investors Won Big In 2021
  • 947 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 948 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 950 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 951 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 954 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 955 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 955 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 957 days Are NFTs About To Take Over Gaming?
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: Indexes Sold Off Sharply Following ISM Report Release

Stock Trading Alert originally published on Feb 04, 2014, 6:57 AM:


 

Our intraday outlook is neutral, and our short-term outlook is now bearish:
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 2.1% and 2.3% on Monday, extending their recent selloff. Investors reacted negatively to worse-than expected ISM Index announcement. The S&P 500 index broke sharply below the support at around 1,775, which is a negative signal. The index is the lowest since last October, with the nearest possible level of support at around 1,730, marked by last September's local high. On the other hand, the nearest resistance is at 1,745-1,750:

SPX Daily Chart
Larger Image

Expectations before the opening of today's session are slightly positive, with index futures currently up 0.2-0.3%. However, the European stock market indexes have lost 0.3-1.0%. Investors will now wait for the Factory Orders data announcement at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, following yesterday's selloff. The nearest resistance is at 1,745-1,750. For now, it looks like a flat correction within a short-term downtrend, however some sort of a "dead cat bounce" cannot be excluded here. The next resistance is at around 1,765, marked by the recent local lows, as we can see on the 15-minute chart:

SPX 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) is in a similar intraday consolidation, following sharp decline. The resistance is at around 3,460-3,470, with a potential support at 3,420-3,430, as the 15-minute chart shows:

NDX 15-Minute Chart
Larger Image

Thank you.

 

Back to homepage

Leave a comment

Leave a comment