Stock Trading Alert: Stocks Deepen Losses on Fed Decision

By: Paul Rejczak | Thu, Jan 30, 2014
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Stock Trading Alert originally published on Jan 30, 2014, 6:55 AM:


 

Our intraday outlook is neutral, and our short-term outlook remains 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 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:

SPX Daily Chart
Larger Image

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:

SPX Chart
Larger Image

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:

NDX Chart
Larger Image

Thank you.

 


 

Paul Rejczak

Author: Paul Rejczak

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
SunshineProfits.com

Paul Rejczak

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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