Briefly: In our opinion, no speculative positions are justified
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes lost 2.8-3.1% on Tuesday, retracing more of their last week's rebound, as investors reacted to Asian stock markets' move down, among others. The S&P 500 index bounced off resistance level of 1,980-2,000. On the other hand, the nearest important level of support is at 1,900. There have been no confirmed positive signals so far. For now, it looks like a volatile consolidation following recent sell-off:
Expectations before the opening of today's trading session are positive, with index futures currently up 0.6-0.7%. The European stock market indexes have been mixed so far. Investors will now wait for series of economic data announcements: ADP Employment Change report at 8:15 a.m., Productivity number at 8:30 a.m., Factory Orders at 10:00 a.m., Crude Inventories at 10:30 a.m., Fed' Beige Book release at 2:00 p.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, following a rebound off yesterday's low. The nearest important level of support remains at around 1,900, and resistance level is at 1,940, marked by local highs, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,200. The nearest important level of resistance is at 4,200-4,220. On the other hand, support level is at 4,100-4,150, as we can see on the 15-minute chart:
Concluding, the broad stock market has retraced most of its last week's rebound yesterday. There have been no confirmed positive signals so far. For now, it looks like a consolidation following recent sell-off. We prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
