Stock Trading Alert: Stocks Fluctuate Near Their Recent Highs

By: Paul Rejczak | Mon, Feb 24, 2014
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Originally published on Feb 24, 2014, 6:10 a.m.


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 0.2% and 0.3% on Friday, as investors took profits following recent rally. The S&P 500 index remains close to its January 15 all-time high of 1,850.84. Will it break above the resistance? For now, it looks like some sort of a topping consolidation pattern, however, a bullish scenario cannot be excluded. The nearest important support is at around 1,800-1,810, marked by the November-December consolidation and some other local extremes. The index continues to trade in a medium-term consolidation, as we can see on the daily chart:

US Stock Market Indexes - Daily Chart
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Expectations before the opening of today's session are virtually flat, with index futures currently mixed between -0.1% and +0.1%. The main European stock market indexes have lost 0.1-0.5% so far. The S&P 500 futures contract (CFD) continues to fluctuate slightly below its recent highs. The resistance is at around 1,840-1,845, and the nearest support is at 1,830:

S&P 500 Futures Contract (CFD)
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The technology Nasdaq 100 futures contract (CFD) remains in a similar trading range, below its recent highs. The resistance is at around 3,685-3,700, and the support is at around 3,640-3,650. For now, it looks like a flat correction within an uptrend, however, a double-top pattern formation cannot be excluded, as the 15-minute chart shows:

NASDAQ 100 Futures Contract (CFD)
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Thank you.



Paul Rejczak

Author: Paul Rejczak

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts

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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