• 401 days Will The ECB Continue To Hike Rates?
  • 401 days Forbes: Aramco Remains Largest Company In The Middle East
  • 403 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 803 days Could Crypto Overtake Traditional Investment?
  • 808 days Americans Still Quitting Jobs At Record Pace
  • 810 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 813 days Is The Dollar Too Strong?
  • 813 days Big Tech Disappoints Investors on Earnings Calls
  • 814 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 816 days China Is Quietly Trying To Distance Itself From Russia
  • 816 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 820 days Crypto Investors Won Big In 2021
  • 820 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 821 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 823 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 824 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 827 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 828 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 828 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 830 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 Extend Their Recent Fluctuations - No Clear Direction Yet

Stock Trading Alert originally published on September 11, 2014, 6:45 AM:


 

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,030 and a 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 gained 0.3-0.8% on Wednesday, extending their recent fluctuations, as investors continued to hesitate following last week's economic data announcements, among others. The S&P 500 index remains relatively close to its all-time high of 2,011.17. The nearest important level of resistance is at around 2,000-2,010, and the support level is at 1,980-1,985, marked by recent local lows. There have been no confirmed negative signals so far. However, we still can see negative technical divergences, accompanied by overbought conditions:

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 main European stock market indexes have lost 0.2-0.4% so far. Investors will now wait for the Initial Claims data release at 8:30 a.m. The S&P 500 futures contract (CFD) continues to fluctuate along the level of 2,000. The resistance level is at around 2,000-2,010, and the nearest important level of support is at 1,980-1,985, marked by local lows, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) remains in a short-term consolidation, as it moves along the level of 4,000. The nearest important level of resistance is at around 4,100-4,115, and the support level is at 4,050-4,060, marked by local lows, as the 15-minute chart shows:

NASDAQ 100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market retraced some of its month-long advance as the S&P 500 index broke below the level of 2,000. We remain bearish, expecting a downward correction or uptrend reversal. Therefore, 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 2,030 and potential profit target is 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