December 16, 2022 (Investorideas.com Newswire) Stocks sold off on Thursday, as Central Banks signaled more tightening ahead. Is this a new downtrend?
The S&P 500 index lost 2.49% on Thursday, as it extended its short-term downtrend after breaking below the 4,000 level. The market continued to react on Wednesday’s FOMC interest rate hike. Yesterday it went the lowest since November 10.
This morning the S&P 500 will likely open 1.0% lower, so it may see more downside. Stock prices will likely break below their local lows and a month-long consolidation.
Last week the index broke below its two-month-long upward trend line, as we can see on the daily chart:
Futures Contract Trades Below 3,900
Let’s take a look at the hourly chart of the S&P 500 futures contract. It is extending a decline and right now, it’s trading below the 3,900 level. The resistance level is now at 3,950-4,000.
The S&P 500 index will likely extend its short-term downtrend at the opening of today’s trading session. We may see an intraday correction or a rebound following the recent sell-off. However, there have been no confirmed positive signals so far. We may see an increased volatility due to an expiration of series of index and stock derivatives, known as quadruple witching.
Here’s the breakdown:
S&P 500 index broke below its over month-long trading range.
Stock prices may extend the downtrend, however, they may see a volatility later in the day.
Like what you’ve read? Subscribe for our daily newsletter today, and you’ll get 7 days of FREE access to our premium daily Stock Trading Alerts as well as our other Alerts. Sign up for the free newsletter today!
Stock Trading Strategist
Sunshine Profits: Effective Investments through Diligence and Care
The information above represents analyses and opinions of Paul Rejczak & Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Paul Rejczak and his associates cannot guarantee the reported data’s accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Rejczak is not a Registered Securities Advisor. By reading his 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, affiliates as well as their family members 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.
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com