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

Stock Trading Alert originally published on October 16, 2014, 6:03 AM:


 

Briefly: In our opinion, no speculative positions are justified at this moment.

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 0.6% and 1.1% on Wednesday, extending their recent move down, as investors kept selling stocks ahead of quarterly corporate earnings releases, economic data announcements. The S&P 500 index bounced off sharply following a quick sell-off to new medium-term low at 1,820.66, which is almost 200 points below the September 19th all-time high of 2,019.26. The nearest important resistance level is at around 1,870-1,875, marked by previous support level. On the other hand, potential level of support is at 1,800-1,820. There have been no confirmed positive signals so far, however, we can see some oversold conditions:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's trading session are negative, with index futures currently down 0.9-1.1%. The main European stock market indexes have lost 1.8-2.8% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Industrial Production at 9:15 a.m., Philadelphia Fed, NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday downtrend, as it trades closer to yesterday's low. The nearest important level of support is at around 1,810-1,820, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it is close to yesterday's low. Support level remains at around 3,690-3,700. On the other hand, the level of resistance is at 3,750-3,760, among others:

NASDAQ 100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market extended its recent sell-off, as the S&P 500 index fell almost 10% below its September all-time high above the level of 2,000. There are some short-term oversold conditions which may lead to an upward correction or downtrend reversal at some point. 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