Saturday, March 15, 2014

Stocks Strong Sell Off Following Negative News

By: Paul_Rejczak

Our 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:

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