Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,885, S&P 500 index).
Our intraday outlook is neutral, and our short-term outlook is bullish, following a breakout above consolidation:
Intraday
(next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: bullish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market were mixed between -0.1% and +0.2% on Monday, extending their short-term consolidation, as investors took some profits following recent rally. Our yesterday’s update has proved to be quite accurate. The S&P 500 index has managed to reach yet another new intraday all-time high at 1,925.88. The nearest important support level is at 1,880-1,900, marked by previous resistance. On the other hand, possible resistance level is at around 1,925. There have been no confirmed negative signals so far, however, we can see some short-term overbought:
Expectations before the opening of today’s session are virtually flat, with index futures currently down 0.1%. The main European stock market indexes have lost 0.1-0.3% so far. Investors will now wait for the Factory Orders data release at 10:00 a.m. The S&P 500 futures contract (CFD) continues to trade in a relatively narrow range, following recent uptrend. The resistance level is at around 1,920-1,925, and the nearest important support remains at 1,910-1,915, marked by some of the previous local extremes, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) extends its short-term consolidation, as it fluctuates below the level of resistance at 3,740. The nearest level of support is at around 3,700-3,710, as the 15-minute chart shows:
Concluding, the broad stock market extends its short-term fluctuations following recent move up. For now, it looks like a flat correction within an uptrend. Therefore, we continue to maintain our already profitable long position, with stop-loss at 1,885 (S&P 500 index).
Thank you.
Paul Rejczak
Stock Trading Strategist
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