stock price trading

Stock Trading Alert: Indexes drop as investors fear Washington’s debt crisis

October 7, 2013, 4:45 PM

The main U.S. stock market indexes lost between 0.8% and 0.9% vs. Friday’s closing prices today, as investors feared the ongoing and still unresolved Washington’s budget crisis. The S&P 500 index remains near its support level at 1,678.67, marked by 50% retracement of the September advance. At the same time, the market extends its recent consolidation, trading below the level of resistance at around 1,700-1,710. The S&P 500 futures contract (CFD) is near its level of support at 1,665, marked by the recent consolidation. On the other hand, the resistance remains at 1,685-1,690. Actually, it looks like a flat correction of the September downtrend, which is a negative signal, as we can see on the 15-minute chart:

S&P500 futures contract - S&P 500 index chart - SPX, Large Cap Index

The Nasdaq 100 futures contract (CFD) extends its three-week long consolidation, with the resistance at around 3,250, marked by some of its recent highs, and the support at the psychological 3,200. There is no clear direction, however, the technology stocks sector remains relatively strong in light of the broad market situation. It may still form a flat correction pattern, which is a bullish sign, as the 15-minute chart shows:

Nasdaq100 futures contract - Nasdaq 100 index chart - NDX

Thank you,
Paul Rejczak

Did you enjoy the article? Share it with the others!

Gold Alerts

More

Dear Sunshine Profits,

gold and silver investors
menu subelement hover background