Our intraday outlook is neutral, and our short-term outlook is now bearish:
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 2.1% and 2.3% on Monday, extending their recent selloff. Investors reacted negatively to worse-than expected ISM Index announcement. The S&P 500 index broke sharply below the support at around 1,775, which is a negative signal. The index is the lowest since last October, with the nearest possible level of support at around 1,730, marked by last September's local high. On the other hand, the nearest resistance is at 1,745-1,750:

Expectations before the opening of today's session are slightly positive, with index futures currently up 0.2-0.3%. However, the European stock market indexes have lost 0.3-1.0%. Investors will now wait for the Factory Orders data announcement at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, following yesterday's selloff. The nearest resistance is at 1,745-1,750. For now, it looks like a flat correction within a short-term downtrend, however some sort of a "dead cat bounce" cannot be excluded here. The next resistance is at around 1,765, marked by the recent local lows, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) is in a similar intraday consolidation, following sharp decline. The resistance is at around 3,460-3,470, with a potential support at 3,420-3,430, 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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