Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains neutral, and our short-term outlook is now neutral, following Tuesday’s intraday reversal:
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 main U.S. stock market indexes were virtually flat on Thursday, extending their short-term consolidation, as investors continued to hesitate following Wednesday’s worse-than-expected GDP data release. The S&P 500 index remains close to its all-time high of 1,968.17, as it fluctuates above month-long upward trend line. The nearest important resistance level is at around 1,960-1,970, and the support level is at 1,940-1,950, among others. It looks like some sort of a topping consolidation, however, there have been no confirmed negative signals so far:
Expectations before the opening of today’s session are slightly negative, with index futures down 0.1-0.2%. The European stock market indexes have gained 0.1-0.2% so far. Investors will now wait for the Michigan Sentiment number announcement at 9:55 a.m. The S&P 500 futures contract (CFD) extends its short-term consolidation, as it fluctuates below the resistance level of 1,950-1,960. On the other hand, the level of support is at 1,935-1,940, marked by recent local lows, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) is relatively stronger than the broad stock market, as it continues to fluctuate slightly below its recent long-term high. The resistance level is at around 3,825-3,830, and the nearest important level of support is at 3,780-3,800, as the 15-minute chart shows:
Concluding, the broad stock market is in a consolidation following recent move up. We remain neutral, expecting some more fluctuations. This may form some sort of a topping pattern, however, there have been no confirmed sell signals so far. So, in our opinion, no speculative positions are justified at this moment.
Thank you.
Paul Rejczak
Stock Trading Strategist
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