Downward Reversal? Stocks Still Relatively Close To Their Recent Highs

S&P 500 futures contract - S&P 500 index chart

 

Nasdaq Close to 7,100 Again

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday consolidation after getting back to the 7,050-7,100 support level. The market gained almost 1,400 points from December the 26th local low of around 5,820. The nearest important resistance level is now at around 7,100-7,150. The Nasdaq futures contract extends its short-term consolidation, as we can see on the 15-minute chart:

Nasdaq 100 futures contract - Nasdaq 100 index chart

 

Apple, Amazon - Uncertainty Again

Let's take a look at the Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com).The stock broke above $175 on Monday, as it extended its recent advance. The market retraced some more of the November-December sell-off. But will it come back above $200? For now, it still looks like a medium-term upward correction:

Daily Apple, Inc. chart - AAPL

 

Now let's take a look at the daily chart of Amazon.com, Inc. (AMZN). The market broke above its medium-term downward trend line on Monday. But will it continue higher? There is a relatively important resistance level of around $1,740-1,750, marked by the previous local high. Yesterday, we saw a decline after bouncing off the resistance level:

Daily Amazon.com, Inc. chart - AMZN

 

Dow Jones - Short-Term Downward Correction

The Dow Jones Industrial Average extended its short-term uptrend a week ago, but then it reversed lower. The blue-chip stocks' gauge fell below the 26,000 mark on Monday. For now, it looks like a downward correction. However, if the market breaks below the previous resistance level of 25,500, we could see more selling pressure:

Daily DJIA index chart - DJIA, Blue-Chip Index

 

Nikkei Also Lower

Let's take a look at the Japanese Nikkei 225 index. It accelerated the downtrend in late December, as it fell slightly below the level of 19,000. Since then it has been retracing the downtrend. Recently the market broke above its local highs and the 21,000 resistance level. Then it bounced off the resistance level of around 22,000 and retraced most of the recent advance:

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