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 main U.S. stock market indexes lost between 1.0% and 1.2% as investors reacted to the FOMC’s decision concerning further tapering of its asset-purchasing program. The S&P 500 index extended recent decline, testing the support at around 1,775, marked by some of the previous local highs and lows. The market is close to last-year’s upward trend line. Will it break below the line? The nearest important resistance remains at 1,800-1,810, marked by recent local highs, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.2-0.3%. The European stock market indexes have lost 0.2-0.3% so far. Investors continue to worry about the emerging markets crisis, pushing down EUR vs. USD. There will be some economic data released today: Initial Claims, GDP-Advance number at 8:30 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) trades near the low of its recent downtrend, testing a potential level of support at around 1,770. On the other hand, the resistance remains at 1,800:

The Nasdaq 100 futures contract (CFD) is in a similar consolidation, close to its recent low. The support seems to be at around 3,450-3,470, and the resistance is at around 3,520. For now, it looks like a flat correction within a downtrend, as the 15-minute chart shows:

Thank you.

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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Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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