Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is still 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 gained between 0.1% and 0.4% on Thursday, extending their short-term move up, following some further investors’ sentiment improvement. The S&P 500 index got closer to its May 13 all-time high at 1,902.17, testing the psychological resistance of 1,900. However, there is still no clear medium-term direction, as the broad stock market trades only slightly above its early March local highs. On the other hand, there have been no confirmed negative signals so far:
Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have been mixed between -0.3% and +0.2% so far. Investors will now wait for the Durable Goods number announcement at 8:30 a.m. The S&P 500 futures contract (CFD) is in a relatively narrow intraday trading range, as it is below the level of resistance at 1,885-1,900. The nearest important support level is at 1,880-1,885, marked by previous resistance, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) is in a short-term uptrend, following breaking above the resistance of 3,600-3,620. The nearest important resistance is at around 3,660-3,670, marked by early April local highs, and the next resistance is at the psychological level of 3,700. There have been no confirmed short-term negative signals so far:
Concluding, the broad stock market got closer to last week’s all-time high. Will it continue its long-term uptrend, breaking above few month long consolidation? We may be nearing some important juncture here. All in all, we remain bullish and continue to maintain our already profitable long position, with stop loss at 1,850 (S&P 500 index). In other words, we will try to let the profit run.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
