stock price trading

Stock Trading Alert: Short-term bottom forming or just a flat correction within downtrend?

April 8, 2014, 6:52 AM

Briefly: In our opinion no speculative positions are justified.

Our intraday outlook is neutral, and our short-term outlook remains 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 0.9-1.1% on Monday, extending recent move down, as investors intensified their selling, following some negative geopolitical news concerning Russia-Ukraine conflict, among others. The S&P 500 index has retraced its late March – early April uptrend. The nearest important resistance is at around 1,860-1,865, marked by yesterday’s daily high of 1,864.04. The price is at the support of 1,840-1,850, marked by a month-long consolidation, as the daily chart shows:

Daily S&P 500 index chart - SPX, Large Cap Index

Expectations before the opening of today’s session are virtually flat, with index futures fluctuating around yesterday’s closing prices. The main European stock market indexes have lost between 0.4% and 0.7% so far. Investors will now wait for the JOLTS – Job Openings number release at 10:00 a.m. The S&P 500 futures contract (CFD) trades near yesterday’s low, as it tests late March support of 1,830-1,835. For now, there have been confirmed downtrend reversal signals so far, however, we can see some fluctuations, probably a short-covering action:

S&P500 futures contract - S&P 500 index chart - SPX

The technology Nasdaq 100 futures contract (CFD) Fluctuates along the psychological level of 3,500, following recent sharp move down. The support is at around 3,470-3,480, and the nearest important resistance is at 3,540-3,550, marked by yesterday’s bounce high, as we can see on the 15-minute chart:

Nasdaq100 futures contract - Nasdaq 100 index chart - NDX

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts

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Dear Sunshine Profits,

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