Stock Trading Alert: Uncertainty Following Yesterday's Move Up …
Stock Trading Alert: Uncertainty Following Yesterday’s Move Up – New Uptrend Or Just A Quick Bounce?
By:
| Thu, Apr 10, 2014
Stock
Trading Alert originally published on Apr 10, 2014, 6:57 AM:
Briefly: In our opinion no speculative positions are justified.
Our intraday outlook remains neutral, as the market may retrace some of yesterday’s
move up, extending its month-long fluctuations, and our short-term outlook
is 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 gained between 1.1% and 1.8% on Wednesday, retracing
some of their recent move down, as investors reacted to the FOMC Minutes release,
hoping for prolonged easy monetary policy. The S&P 500 index trades higher
within its March-April consolidation, after bouncing off the support at around
1,840-1,850. The bounce was not that much of a surprise, as we have stated
in our yesterday’s forecast: “(…) a downtrend reversal cannot be ruled out
– the market is at the support of 1,840-1,850, marked by March consolidation,
among others”. The resistance remains at 1,880-1,900. There is no clear short-term
trend, 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 been
mixed so far. Investors will now wait for the Initial Claims data announcement
at 8:30 a.m. The S&P 500 futures contract (CFD) has bounced off the support
at 1,830-1,840. There is some intraday resistance at around 1,865. For now,
it only looks like a correction within downtrend. The resistance remains at
1,875-1,890, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) has followed a similar path,
bouncing off the support at 3,480-3,500. The nearest important resistance is
at the psychological 3,600. The market remains in a month-long downtrend, as
it keeps establishing lower lows and lower highs:
Concluding, yesterday’s move up looks corrective and there have been no confirmed
signals of a new short-term uptrend so far.
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‘
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Trading Alerts.
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Stock Trading Alert: Uncertainty Following Yesterday's Move Up …
