S&P 500 Reached 2,600, Downward Correction Ahead?

The S&P 500 futures contract trades within an intraday consolidation following an overnight decline. The nearest important level of support is now at around 2,545-2,550, marked by the recent local lows. On the other hand, the resistance level is at 2,580-2,600. The futures contract is now below its short-term upward trend line, as the 15-minute chart shows:

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

 

Nasdaq Also Lower

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday consolidation. It broke above to the level of 6,600 yesterday, but then it failed to continue higher and got back below that resistance level. It gained more than 800 points from December the 26th local low of around 5,820 and we can see some technical overbought conditions. However, the Nasdaq futures contract remains close to the short-term upward trend line, as we can see on the 15-minute chart:

Nasdaq 100 futures contract - Nasdaq 100 index chart

 

Apple, Amazon - Short-Term Uptrend

Let's take a look at Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com). The stock sold off on Thursday a week ago, as it reached the new medium-term low of $142. We saw clear short-term oversold conditions and the stock retraced some of its recent decline on Friday. However, there have been no confirmed positive signals so far. But it is above the month-long downward trend line again:

Daily Apple, Inc. chart - AAPL

 

Now let's take a look at Amazon.com, Inc. stock (AMZN) daily chart. The stock accelerated its downtrend in the late December and it reached the new medium-term low of $1,307. Since then it was consequently advancing. On Tuesday the market reached its three-month-long downward trend line. We may see an attempt at breaking higher:

Daily Amazon.com, Inc. chart - AMZN

 

Dow Jones Closer to 24,000 Mark

The Dow Jones Industrial Average broke below its two-month-long consolidation in the mid-December and then it accelerated much lower. The blue-chip stocks' gauge fell below the level of 22,000. It slightly extended the downtrend recently before sharply reversing higher and getting back closer to 24,000 mark. So was it an upward reversal or just a correction within a downtrend? The market is now slightly below its October - December trading range:

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