Our intraday outlook is neutral, and our short-term outlook remains bearish:

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 main U.S. stock market indexes gained 1.2% on Thursday, as investors reacted to some better-than-expected economic data announcements. The S&P 500 index broke above the recent days’ trading range, bouncing off support at around 1,730-1,740, marked by last year’s local extremes. On the other hand, the nearest important resistance is at 1,770-1,775, marked by late January consolidation. The index remains below previously broken medium-term trend line, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up between 0.2% and 0.5%. The European stock market indexes have gained 0.1-0.2% so far. Investors will now wait for the economic data announcements: Nonfarm Payrolls and the Unemployment Rate for the month of January. The data is likely to move the markets as investors hesitate following yesterday’s rebound. The S&P 500 futures contract (CFD) has reached previously broken support at around 1,765-1,775. For now, it looks like a correction within the recent move down, however, a change of trend cannot be excluded. The resistance remains at 1,790-1800, as the 15-minute chart shows:

Analogously, the technology Nasdaq 100 futures contract (CFD) rebounded to its recent consolidation. The resistance is at 3,520-3,530, and the support remains at 3420-3,430. There have been no confirmed short-term downtrend reversal signals so far:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts