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 gained between 0.7% and 1.2%, resuming their long-term uptrend, as investors bought stocks ahead of quarterly earnings releases, economic data announcements. The S&P 500 index has reached a new all-time high at 1,978.58, moving closer to the level of 2,000. The level of resistance is at around 1,980. On the other hand, the support level is at 1,960, marked by previous resistance, among others. There have been no confirmed negative signals so far. The index remains above its month-long upward trend line, which is positive. However, there is some short-term overbought, as we can see on the daily chart:
Expectations before the opening of today’s session are virtually flat, with index future currently up 0.1%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Challenger Job Cuts report at 7:30 a.m., ADP Employment Change number at 8:15 a.m., Factory Orders at 10:00 a.m. The S&P 500 futures contract (CFD) trades close to its new all-time high, as it is slightly below the level of 1,970. The nearest important level of support is at around 1,960, marked by previous local high, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) is relatively stronger, as it trades slightly below the level of 3,900. The support level is at 3,850, among others. There have been no confirmed negative signals so far:
Concluding, the broad stock market resumed its uptrend, reaching new all-time highs. Will this move up continue even further? There have been no negative signals so far, however, there is some short-term overbought which may lead to a correction. We think that it is better to stay out of the market at this moment.
Thank you.
Paul Rejczak
Stock Trading Strategist
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