The major U.S. stock market indexes lost between 0.3% and 0.4% yesterday, as investors took profits following recent rally. The S&P 500 index is in a short-term correction, retracing some of its last week’s move up. The nearest important support is at 1,770-1,775, marked by the late October, early November consolidation. There are no confirmed uptrend reversal signals, at least for now. The resistance remains at around 1,800, marked by Monday’s all-time high of 1,802.33, as we can see on the daily chart:
Expectations before the opening of today’s session are slightly positive, with index futures currently gaining 0.1-0.2%. However, the European stock markets have lost 0.1-0.7%. so far. Investors will now wait for some economic data announcements: Initial Claims and Producer Price Index at 8:30 a.m., Philadelphia Fed and Leading Indicators at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a slightly descending channel, fluctuating near the support of 1,770-1,775. For now, it looks like a downward correction of the uptrend, however a change of trend cannot be excluded:
Our intraday outlook remains bearish, and our short-term outlook is bearish:
Intraday outlook: bearish
Short-term outlook: bearish
Medium-term outlook: neutral
Long-term outlook: bullish
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Thank you,
Paul Rejczak