• 287 days Will The ECB Continue To Hike Rates?
  • 288 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?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

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: Uncertainty Following Yesterday's Move Up - New Uptrend Or Just A Quick Bounce?

Stock Trading Alert originally published on Apr 10, 2014, 6:57 AM:


 

Briefly: In our opinion no speculative positions are justified.

Our intraday outlook remains neutral, as the market may retrace some of yesterday's move up, extending its month-long fluctuations, 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 U.S. stock market indexes gained between 1.1% and 1.8% on Wednesday, retracing some of their recent move down, as investors reacted to the FOMC Minutes release, hoping for prolonged easy monetary policy. The S&P 500 index trades higher within its March-April consolidation, after bouncing off the support at around 1,840-1,850. The bounce was not that much of a surprise, as we have stated in our yesterday's forecast: "(...) a downtrend reversal cannot be ruled out - the market is at the support of 1,840-1,850, marked by March consolidation, among others". The resistance remains at 1,880-1,900. There is no clear short-term trend, as we can see on the daily chart:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's session are negative, with index futures currently down 0.2-0.3%. The European stock market indexes have been mixed so far. Investors will now wait for the Initial Claims data announcement at 8:30 a.m. The S&P 500 futures contract (CFD) has bounced off the support at 1,830-1,840. There is some intraday resistance at around 1,865. For now, it only looks like a correction within downtrend. The resistance remains at 1,875-1,890, as the 15-minute chart shows:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) has followed a similar path, bouncing off the support at 3,480-3,500. The nearest important resistance is at the psychological 3,600. The market remains in a month-long downtrend, as it keeps establishing lower lows and lower highs:

NASDAQ 100 Futures Chart
Larger Image

Concluding, yesterday's move up looks corrective and there have been no confirmed signals of a new short-term uptrend so far.

Thank you.

 

Back to homepage

Leave a comment

Leave a comment