Briefly: In our opinion no speculative positions are justified.

Our intraday outlook remains neutral, and our short-term outlook is neutral:

Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes lost between 0.9% and 1.6% on Friday, retracing some of their recent move up, as investors took profits following corporate earnings reports, fearing possible negative Russia-Ukraine crisis outcomes. The S&P 500 index broke below last week’s consolidation, going below the support level at around 1,870. The resistance remains at 1,880-1,900, marked by the early April all-time high of 1,897.28, among others. On the other hand, the support is at 1,840-1,850, and the next support is at 1,800-1,810. For now, it looks like some further medium-term consolidation, still with no clear direction, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.3-0.4%. The European stock market indexes have gained 0.3-1.0% so far. Investors will now wait for the Pending Home Sales number release at 10:00 a.m. The S&P 500 futures contract (CFD) extends its short-term fluctuations, as it trades along the level of 1,860-1,870. The resistance is at 1,880-1,890, and the support is at around 1,850-1,855:

The technology Nasdaq 100 futures contract (CFD) trades slightly below some of last week’s local lows, which is relatively weaker than the broad stock market. The nearest important resistance is at 3,550, and the support is at 3,520, as the 15-minute chart shows:

Concluding, the broad stock market continues to fluctuate as investors remain uncertain. There is still no clear direction - opening a new short-term trading position doesn’t seem justified from the risk/reward point of view and staying on sidelines seems to be appropriate at this time.

Thank you.

Paul Rejczak
Stock Trading Strategist
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