Stocks Strong Sell Off Following Negative News
Stock-Markets / Stock Markets 2014 Mar 14, 2014 - 02:10 PM GMTOur intraday outlook remains bearish, and our short-term outlook is neutral:
Intraday (next 24 hours) outlook: bearish
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 between 1.2% and 1.5% on Thursday, as investors reacted to some headlines concerning Chinese economy's slowing growth, among others. The S&P 500 index moved further away from last Friday's all-time high of 1,883.57. The index is slightly below the support at 1,850, which is a negative signal. The nearest resistance is at 1,860-1,865, marked by the previous support. On the other hand, the next support is at around 1,825, marked by some local lows, as we can see on the daily chart:
Expectations before the opening of today's session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have lost 0.2-0.5% so far. Investors will now wait for some economic data releases: Producer Price Index at 8:30 a.m., Michigan Sentiment at 9:55 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow intraday range, following sharp decline. The nearest support is at around 1,830-1,840, and the resistance is at 1,850-1,855, among others:
The technology Nasdaq 100 futures contract (CFD) trades close to its recent lows, testing the level of support at around 3,630-3,640. For now, it looks like an intraday correction within downtrend. The nearest important resistance is at around 3,685, 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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