Stock Trading Alert: Is The Plunge Over Yet? | Paul Rejczak …
Stock Trading Alert: Is The Plunge Over Yet?
By:
| Mon, Apr 14, 2014
Stock
Trading Alert originally published on Apr 14, 2014, 6:41 AM:
Briefly: In our opinion short positions are still favored (stop-loss at 1,850,
short-term profit target at around 1,800, S&P 500 index), and they have
been already profitable.
Our intraday outlook is now neutral, as the market may consolidate after selling
off recently, and our short-term outlook remains bearish, following breakdown
below March-April consolidation:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The main U.S. stock market indexes lost between 0.9% and 1.2% on Friday, extending
their recent move down, as investors continued to sell stocks, worried by the
geopolitical risk of Russia-Ukraine conflict, among others. The S&P 500
index is in a short-term downtrend, below its March consolidation. The resistance remains
at 1,840-1,850, marked by previous support. On the other hand, a potential
level of support is at around 1,800-1,810. The next support is at 1,775, marked
by some of the previous local lows, as we can see on the daily chart:
Expectations before the opening of today’s session are negative, with index
futures currently down 0.2-0.3%. The European stock market indexes have lost
0.6-0.7% so far. Investors will now wait for some economic data announcements:
Retail Sales number at 8:30 a.m., Business Inventories at 10:00 a.m. The S&P
500 futures contract (CFD) remains in a short-term downtrend, extending last
week’s move down. There have been no confirmed downtrend reversal signals so
far. However, the market is close to the psychological support of 1,800. The
resistance is at around 1,825-1,830, marked by Friday’s local highs, as the
15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) has extended its short-term
downtrend, breaking below the psychological level of 3,500. The resistance
is at around 3,480-3,500. On the other hand, a potential support is at around
3,400-3,420, marked by the early February local lows. There have been no confirmed
positive signals so far:
Concluding, the market remains in a short-term downtrend, however, it may
consolidate for some time, following last week’s sharp selloff.
Thank you.
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Author: Paul Rejczak
Paul Rejczak
Stock Trading Strategist
Stock
Trading Alerts
SunshineProfits.com
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 behavior based on both traditional and innovative methods of technical
analysis. Paul has made his name by developing mechanical trading systems.
Paul is the author of Sunshine Profits‘
premium service for stock traders: Stock
Trading Alerts.
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Stock Trading Alert: Is The Plunge Over Yet? | Paul Rejczak …
