Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains 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): neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes gained 0.8-1.2% on Thursday, extending their recent move up, as investors reacted to oil prices rebound, among others. However, the S&P 500 index continues to trade within three-month long consolidation. The nearest important level of resistance is at 2,060-2,065, marked by previous local highs. The next resistance level is at 2,080-2,100, marked by December 29th all-time high of 2,093.55. On the other, hand, support level remains at 2,040-2,050:

Expectations before the opening of today's trading session are virtually flat. The main Europen stock market indexes have lost 0.3-0.7% so far. Investors will now wait for some important economic data announcements: Nonfarm Payrolls, Unemployment Rate at 8:30 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation following yesterday's advance. The nearest important level of support is at 2,050. There have been no confirmed negative signals so far, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) is in a similar intraday consolidation following yesterday's move up, as it trades along the level of 4,250. The nearest important support level remains at around 4,230-4,240, marked by some previous local extremes, as the 15-minute chart shows:

Concluding, the broad stock market continued its short-term uptrend yesterday, as the S&P 500 index got closer to previous local highs. We still 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