S&P 500: the uptrend remains in place

The S&P 500 fell for a second consecutive day on Wednesday taking the index back below the 2,100 level. The Nasdaq and Dow Jones Industrial Average both finished lower by similar amounts as nearly all stock market sectors finished in the red.

Declines were felt across the board, except in the healthcare sector where major news from the US Supreme Court saw the majority of US healthcare companies buck the trend.
The hearing in court is looking to challenge the Affordable Care Act, and this is giving investors renewed hope that President Obama’s position on the healthcare insurance policy will be revived.

Big winners included Bristol-Myers Squibb, which also saw positive news relating to regulatory approval for one of it’s principal drugs used to treat lung cancer. The stock jumped at least 6% by the close of play on Wednesday. Elsewhere in the markets, there were significant gains for HCA Holdings, up 5.8%, and Tenet Healthcare which climbed 6.2%, to close at $49.99.

Looking at the broader stock market and volume was slightly down on the average on Wednesday with around 6 billion shares changing hands on US exchanges. Market advancers were outnumbered by declines with 1,869 issues falling and just 1,070 issues rising in New York.

Technicals & Outlook

 

The S&P 500 Index ended the Wednesday lower by around -0.48% though the index did manage to finish off its lows.
The market spent the entire session trading below its main pivot point before rebounding off the second support level at around 15:00 GMT.

With global markets delicately poised, we are looking for losses to continue in the S&P over the next few days and see potential for a move down to 2,070. But the main trend is up. The MACD is above its signal line and the Directional Movement Index +DI line is still above the -DI line. We are now more bullish and see the possibility of a move up to 2,140 developing over the next few weeks.

Thierry Laduguie is Trading Strategist at www.bettertrader.co.uk

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @eyield

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments are closed

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Robbie Burns

• 

  Alpha Analysis

• 

  Jagdip Cheema

• 

  London Academy Of Trading