• 745 days Will The ECB Continue To Hike Rates?
  • 746 days Forbes: Aramco Remains Largest Company In The Middle East
  • 747 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,147 days Could Crypto Overtake Traditional Investment?
  • 1,152 days Americans Still Quitting Jobs At Record Pace
  • 1,154 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,157 days Is The Dollar Too Strong?
  • 1,157 days Big Tech Disappoints Investors on Earnings Calls
  • 1,158 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,160 days China Is Quietly Trying To Distance Itself From Russia
  • 1,160 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,164 days Crypto Investors Won Big In 2021
  • 1,164 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,165 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,167 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,168 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,171 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,172 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,172 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,174 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

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: Stocks Rebounded Following Recent Sell-Off, But Will It Last?

Stock Trading Alert originally published on October 20, 2014, 6:42 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 gained between 1.3% and 1.6% on Friday, retracing some of their last week's losses, as investors hunted bargains following relatively sharp downward correction. The S&P 500 index bounced off the support level of 1,800-1,820, marked by previous medium-term lows. On the other hand, the nearest important level of resistance is at 1,900-1,910, marked by previous support level, among others. For now, it looks like an upward correction within a short-term downtrend, as there have been no confirmed downtrend reversal signals so far:

S&P500 Daily Chart
Larger Image

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.2-0.3%. The main European stock market indexes have lost 0.8-1.0% so far. The S&P 500 futures contract (CFD) is in a short-term consolidation, as it fluctuates following Friday's move up. The nearest important resistance level is at around 1,890-1,900, marked by some previous levels of support, as we can see on the 15-minute chart:

S&P500 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) trades along the level of 3,800, following a rebound off last week's lows. The support level is at around 3,770-3,780, among others. For now, it looks like an upward correction within a short-term downtrend, as the 15-minute chart shows:

NASDAQ 100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market bounced off sharply, following recent move down. There are still some short-term oversold conditions which may lead to an upward correction or downtrend reversal. We prefer to be out of the market at this moment, as we expect more short-term volatility. 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