Our intraday outlook is neutral, and our short-term outlook remains neutral, as there may be some further consolidation following recent decline:

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 U.S. stock market indexes gained between 0.7% and 1.9% yesterday, retracing some of their recent selloff as investors hoped for a short-term downtrend reversal. The S&P 500 index bounced off the support at around 1,775, marked by October-December local highs and lows and last year’s trend line. Will the downward correction end at these levels? For now, it only looks like a flat correction within recent downtrend. The nearest important resistance is at 1,800-1,810, as we can see on the daily chart:

Expectations before the opening of today’s session are negative, with index futures currently down 0.2-0.5%. The European stock market indexes have lost 0.8-1.3% so far. Investors will now wait for series of economic data announcements: Personal Income and Personal Spending numbers, PCE Prices-Core and Employment Cost Index at 8:30 a.m. Chicago PMI at 9:45 a.m., Michigan Sentiment at 9:55 a.m. The S&P 500 futures contract (CFD) extends its recent fluctuations. The support remains at around 1,765-1,770, and the resistance is at 1,790-1,800. Still with no clear short-term direction, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) continues to fluctuate following recent move down. The resistance is at around 3,520-3,540, and the nearest support is at 3,460-3,470. There are no confirmed downtrend reversal signals so far:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts