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.