Stock Market: Downtrend Reversal Attempts

Share This Article
September 3, 2013 9:26am NYSE:DIV NYSE:SPY

sellbuyPaul Rejczak: The main U.S. stock market indexes lost 0.2-0.6% on Friday, extending their recent consolidation, after selling off in August. The indexes are expected to bounce off the consolidation’s lower limit, as investors react positively


to President Obama’s August 31 statement on Syria. The S&P500 index fluctuates around the June-August uptrend’s 50% retracement. The nearest important resistance is at 1,652.54-1,656.02, marked by last Tuesday’s daily gap down. We have no confirmed trend reversal signals, as the index has been in a downward channel since the beginning of August, staying in a four-month long consolidation area, as the daily chart shows:

Daily S&P 500 Index chart - SPX, Large Cap Index

Expectations before the opening of today’s session are positive, even though the market sentiment has cooled down since yesterday, with index futures currently up 0.6-0.8% vs. their Friday’s closing prices. The European stock market indexes have lost 0.3-0.6% so far. Investors will now wait for the U.S. economic data announcements: ISM Index and Construction Spending numbers, both to be released at 10:00 a.m. The S&P500 futures contract (CFD) extends its fluctuations over the level of resistance at around 1,625-1,630, still well below its month-long downward trend line, as we can see on the 15-minute chart:

S&P500 futures contract - S&P 500 Index chart - SPX, Large Cap Index

This article is brought to you courtesy of Paul Rejczak from Sunshine Profits.


7 Best ETFs for the NEXT Bull Market

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



5 WINNING Stock Chart Patterns

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories