• 547 days Will The ECB Continue To Hike Rates?
  • 547 days Forbes: Aramco Remains Largest Company In The Middle East
  • 549 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 949 days Could Crypto Overtake Traditional Investment?
  • 954 days Americans Still Quitting Jobs At Record Pace
  • 956 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 959 days Is The Dollar Too Strong?
  • 959 days Big Tech Disappoints Investors on Earnings Calls
  • 960 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 962 days China Is Quietly Trying To Distance Itself From Russia
  • 962 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 966 days Crypto Investors Won Big In 2021
  • 966 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 967 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 969 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 970 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 973 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 974 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 974 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 976 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: Stock Extended Their Sell-Off - Will Downtrend Continue?

Stock Trading Alert originally published on October 13, 2014, 6:30 AM:


 

Briefly: In our opinion, no speculative positions are justified at this moment. We will close our profitable short position with entry price of 2,000.5 (on August 27th, S&P 500 index) at the open of today's trading session (cash market), as the S&P 500 is reaching our potential profit target of 1,900.

Our intraday outlook is neutral, 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 lost between 0.7% and 2.5% on Friday, extending their recent downtrend, as investors continued to sell stocks ahead of corporate quarterly earnings releases, among others. Our Friday's bearish intraday outlook has proved accurate. The S&P 500 index got close to the level of 1,900, as it reached level of support marked by the early August local low and April-May consolidation. On the other hand, the nearest important resistance level is at around 1,920-1,925, marked by recent local lows, as we can see on the daily chart:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have gained 0.1-0.5% so far. The S&P 500 futures contract (CFD) extended its downtrend earlier in the morning. However, it later managed to bounce off the support level at around 1,880. The nearest important level of resistance is at 1,900, marked by previous support level, as the 15-minute chart shows:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 was relatively weaker as it accelerated a sell-off, getting closer to the level of 3,800. The nearest important support level is at around 3,800-3,820. On the other hand, the level of resistance is at 3,880-3,900, among others:

NASDAQ100 15-Minute Chart
Larger Image

Concluding, the broad stock market accelerated its downtrend on Friday, breaking below last week's consolidation. The S&P 500 index has almost reached our profit target level at 1,900. So, we decided to close our speculative short position at the open of today's trading session (cash market). There are some short-term oversold conditions which may lead to an upward correction or downtrend reversal. Therefore, we prefer to be out of the market at this moment. We will let you know when we think it is safe to get back in the market.

Thank you.

 

Back to homepage

Leave a comment

Leave a comment