11.04.2014 - New bubble on the U.S. market?

The American market after reaching the psychological mark of 1900 points on a wide U.S. stock index S&P500, has started to correct downwards. The reason for the decline was the last sale of shares of high-tech and biotech companies. Some analysts point to the possibility of a new bubble.

We should note the record low number of new claims unemployment, which fell to 300 thousand which is the lowest level since May 2007.

From a technical point of view, the price of futures on index S&P500, has broken through a strong support level at 1840 and is consolidating in the area 1835-1840. In case of price fixing below this level we recommend to open short positions with the targets at 1800 and 1780. We maintain a long-term negative outlook for the U.S. stock market.

Wish you the profits!

FXFINPRO Capital Analytical department.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.