Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Jim Rickards: Next Financial Panic Will Be the Biggest of All, with Only One Place to Turn… - 20th Jan 18
Macro Trend Changes for Gold in 2018 and Beyond - Empire Club of Canada - 20th Jan 18
Top 5 Trader Information Sources for Timely, Successful Investing - 20th Jan 18
Bond Market Bear Creating Gold Bull Market - 19th Jan 18
Gold Stocks GDX $25 Breakout on Earnings - 19th Jan 18
SPX is Higher But No Breakout - 19th Jan 18
Game Changer for Bitcoin - 19th Jan 18
Upside Risk for Gold in 2018 - 19th Jan 18
Money Minute - A 60-second snapshot of the UK Economy - 19th Jan 18
Discovery Sport Real MPG Fuel Economy Vs Land Rover 53.3 MPG Sales Pitch - 19th Jan 18
For Americans Buying Gold and Silver: Still a Big U.S. Pricing Advantage - 19th Jan 18
5 Maps And Charts That Predict Geopolitical Trends In 2018 - 19th Jan 18
North Korean Quagmire: Part 2. Bombing, Nuclear Threats, and Resolution - 19th Jan 18
Complete Guide On Forex Trading Market - 19th Jan 18
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18
How to Know If This Stock Market Rally Will Continue for Two More Months? - 14th Jan 18
Everything SMIGGLE from Pencil Cases to Water Bottles, Pens and Springs! - 14th Jan 18
Land Rover Discovery Sport Very Bad MPG Fuel Economy! Real Owner's Review - 14th Jan 18
Gold Miners’ Status Updated - 13th Jan 18
Gold And Silver – Review of Annual, Qrtly, Monthly, Weekly Charts. Reality v Sentiment - 13th Jan 18
Gold GLD ETF Update.. Bear Market Reversal Watch - 13th Jan 18
Stock Market Leadership In 2018 To Come From Oil & Gas - 13th Jan 18
Stock Market Primed for a Reversal - 13th Jan 18
Live Trading Webinar: Discover 3 High-Confidence Trade Set-Ups - 13th Jan 18
Optimum Entry Point for Gold and Silver Stocks - 12th Jan 18
Stock Selloffs Great for Gold - 12th Jan 18
These 3 Facts Show Gold Is Set to Surge in 2018 - 12th Jan 18
How China is Locking Up Critical Resources in the US’s Own Backyard - 12th Jan 18
Stock futures are struggling. May reverse Today - 12th Jan 18
Three Surprising Places You See Cryptocurrency - 12th Jan 18
Semi Seconductor Stocks Canary Still Chirping, But He’s Gonna Croak in 2018 - 12th Jan 18
Land Rover Discovery Sport Panoramic Sunroof Questions Answered - 12th Jan 18
Information About Trading With Alpari And Its Advantages - 12th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

More Volatility As Stocks Retrace Some Of Their Recent Rally

Stock-Markets / Stock Market 2017 Oct 26, 2017 - 04:11 PM GMT

By: Paul_Rejczak

Stock-Markets

Briefly:
Intraday trade: Our Wednesday's intraday trading outlook was bearish. It proved accurate because the S&P 500 index lost 0.5%, following neutral opening of the trading session. However, the market didn't reach our intraday profit target level of 2,535 (daily low at 2,544.00). The S&P 500 index may retrace more of its October rally. Therefore, intraday short position is favored again. Stop-loss is now at the level of 2,575 and potential profit target is at 2,535 (S&P 500 index).

Our intraday outlook is bearish today. Our short-term outlook is neutral, and our medium-term outlook is neutral:


Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): neutral

The main U.S. stock market indexes lost 0.5% on Wednesday, as investors took short-term profits off the table following recent move up. The S&P 500 index fell the lowest since early October, before bouncing off support level at around 2,550. It currently trades 0.8% below Monday's new record high of 2,578.29. The Dow Jones Industrial Average retraced some of its recent rally yesterday, as it fell 0.5%. It bounced off resistance level marked by Tuesday's new all-time high of 23,485.25. The technology Nasdaq Composite trades around 1.2% below its Monday's new record high of 6,641.57. The nearest important level of support of the S&P 500 index is at 2,545-2,550, marked by yesterday's daily low and some previous local lows. The next support level is at 2,520-2,530, marked by the October 2 daily gap up of 2,519.44-2,520.40, among others. On the other hand, resistance level is at 2,565-2,570, marked by short-term fluctuations. The next level of resistance is at around 2,580, marked by the above-mentioned all-time high. The S&P 500 index retraced some of its recent advance yesterday, as it fell below the level of 2,550. Is this a new downtrend or just quick downward correction before another leg up? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions:

Short-Term Fluctuations

Expectations before the opening of today's trading session are virtually flat, with index futures currently between 0.0% and +0.1% vs. yesterday's closing prices. The European stock market indexes have gained 0.3-0.4% so far. Investors will now wait for some economic data announcements: Initial Claims, Trade Balance at 8:30 a.m., Pending Home Sales at 10:00 a.m. The market expects that Initial Claims were at 235,000 last week. Investors will also wait for more quarterly corporate earnings releases. The S&P 500 futures contract trades within an intraday consolidation, following yesterday's intraday bounce. The market retraced most of its decline, as it gained almost 20 points off the daily low. The nearest important level of support is at around 2,540-2,550. On the other hand, resistance level is at 2,560-2,570, marked by recent consolidation. The futures contract is slightly below its short-term downward trend line, as the 15-minute chart shows:

 

Nasdaq Remains Slightly Weaker

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday consolidation following bounce off yesterday's daily low. The nearest important level of resistance is at around 6,080-6,100, and the next resistance level is at 6,120-6,130, marked by record high. On the other hand, support level is at around 6,050-6,060, marked by local lows. The next level of support is at 6,000-6,020. The Nasdaq 100 futures contract trades along its recent consolidation, as we can see on the 15-minute chart

Let's take a look at Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com). It broke below its short-term upward trend line last week, after reaching resistance level of $160. Since then it fluctuates within a short-term consolidation along the price of $156. Is this a new downtrend or just downward correction following recent advance?

Now, let's take a look at Amazon.com, Inc. stock (AMZN) daily chart (chart courtesy of http://stockcharts.com). Amazon will announce its quarterly earnings after trading session today. Will it break below three-month-long rising wedge pattern? Or bounce off upward trend line at around $970? The market extends its medium-term fluctuations:

The Dow Jones Industrial Average daily chart (chart courtesy of http://stockcharts.com) shows that blue-chip index fluctuates following its recent rally. The market retraced some of its recent move up. We still can see clear technical overbought conditions. Is this a medium-term blow-off top pattern?

Concluding, the S&P 500 index lost 0.5% on Wednesday, as it retraced some its recent advance. The broad stock market fell the lowest since early October. However, it has managed to bounce back again following quick move below the level of 2,550. Investors will wait for more quarterly corporate earnings releases. Will they drive stock prices even higher? Will the broad stock market follow blue-chip stocks (DJIA index) euphoria-rally? Or is this some topping pattern before downward correction?

If you enjoyed the above analysis and would like to receive free follow-ups, we encourage you to sign up for our daily newsletter – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up now.

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.

* * * * *

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.

Paul Rejczak Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules