• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

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