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 were mixed between -0.4% and 0.0% yesterday, as investors continued to hesitate following Monday’s selloff. The S&P 500 index extended its short-term consolidation along the level of 1,750. The nearest important support remains at around 1,730-1,740, marked by some of the previous local extremes. For now, it looks like another flat correction within the recent downtrend, however, an upward correction cannot be excluded here. The resistance is at 1,770-1,775, marked by the late January consolidation, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.4-0.5%. The European stock market indexes have gained 0.9-1.2% so far. Investors will now wait for some economic data announcements: Challenger Job Cuts report at 7:30 a.m., Initial Claims, Productivity, Unit Labor Costs and Trade Balance at 8:30 a.m. Investors focus on tomorrow’s employment report release. The S&P 500 futures contract (CFD) bounced off the support at around 1,730-1,735. The nearest important resistance is at around 1,765, marked by the recent consolidation’s local lows, as the 15-minute chart shows:

The technology Nasdaq 100 future contract (CFD) trades close to its resistance at around 3,470. Will it break above Tuesday’s local high? For now, it looks like a consolidation following recent selloff. The support remains at 3,420-3,430:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts