Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is bullish, and our short-term outlook remains neutral:
Intraday
(next 24 hours) outlook: bullish
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 were mixed between -0.3% and +0.7% yesterday, following volatile trading session, as investors remained undecided. The S&P 500 index extends its medium-term consolidation, as it trades below the level of resistance at 1,880-1,900. On the other hand, the nearest support level is at around 1,850. Yesterday’s low fell slightly below the level of 1,860, then the market has rallied quite strongly, closing near the level of 1,880. So, there is still no clear short-term direction, as the broad market fluctuates within over two-month long consolidation, as we can see on the daily chart:
Expectations before the opening of today’s session are virtually flat, with index futures currently up 0.1%. The main European stock market indexes have gained 0.5-0.7% so far. Investors will now wait for the Initial Claims data release at 8:30 a.m. The S&P 500 futures contract (CFD) is in a relatively narrow intraday trading range, following yesterday’s rebound. The resistance level remains at around 1,880-1,885, and the support is at 1,855, among others. There have been no confirmed negative signals so far, however, the market seems trendless:
The technology Nasdaq 100 futures contract (CFD) is relatively weaker than the broad market, as it trades below its recent highs. The resistance is at around 3,600, and the nearest important support is at 3,500. There is no clear short-term direction, as the 15-minute chart shows:
Concluding, we continue to maintain our speculative long position in the S&P 500, hoping for a breakout above medium-term consolidation. The stop-loss remains at 1,850.
Thank you.
Paul Rejczak
Stock Trading Strategist
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