• 1 day The Gold Rally Has Finally Run Out Of Steam
  • 1 day Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 4 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 4 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 6 days Why 12 Million American Millionaires Isn’t Good News
  • 7 days Big Oil Is Paying The Price For Investing In Renewables
  • 8 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 9 days Did Amazon Just Democratize Prescription Drugs?
  • 10 days The Private Space Race Just Got Very Real
  • 12 days Short Sellers Are Willing Big In This Turbulent Market
  • 13 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 14 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 15 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 16 days Black Friday Could Be Retailers’ Only Hope
  • 17 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 18 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 20 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 21 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 22 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
  • 23 days The Fin-Tech IPO Of The Century Just Got Crushed
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

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 Market Crash Or Short-Lived Panic?

Stock Trading Alert originally published on August 24, 2015, 6:59 AM:


 

Briefly: In our opinion, no speculative positions are justified

Our intraday outlook is now neutral, and our short-term outlook is neutral. However, our medium-term outlook is now bearish:

Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish

The main U.S. stock market indexes lost 3.1-4.3% on Friday, as investors reacted to global stock markets retreat, economic data releases. Our Friday's bearish intraday outlook has proved accurate. The S&P 500 index broke below the level of 2,000 which is a negative medium-term signal. It is the lowest since late October, as it currently trades below half-year long consolidation. Therefore, we change our medium-term outlook from "neutral" to "bearish". We continue to maintain our bullish long-term outlook for now. The nearest important level of resistance is at around 1,980-2,000, marked by previous support level. On the other hand, potential support level is at around 1,900-1,950. There have been no confirmed short-term positive signals so far:

S&P500 Futures Daily Chart
Larger Image

Expectations before the opening of today's trading session are negative, with index futures currently down 1.9-3.5%, following Asian stock markets panic sell-off. The European stock market indexes have lost 2.7-3.0% so far. The S&P 500 futures contract (CFD) trades within an intraday downtrend, as it is closer to the level of 1,900. The nearest important level of resistance is at around 1,930-1,950, as the 15-minute chart shows:

S&P500 Futures 15-Minute Chart
Larger Image

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues last week's sell-off this morning. The nearest important level of support is at 4,000, and resistance level is at around 4,050-4,100, among others, as we can see on the 15-minute chart:

NASDAQ100 Futures 15-Minute Chart
Larger Image

Concluding, the broad stock market continued its dramatic sell-off on Friday, as the S&P 500 index broke below its technically crucial level of 2,000. Our late April's short position's (2,098.27, S&P 500 index) profit target has been reached at the level of 1,980. Overall, we gained almost 120 index points on that pre-planned trade. As of this morning, we prefer to be out of the market, avoiding low risk/reward ratio trades. 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