The main U.S. stock market indexes gained between 1.2% and 1.8% on Wednesday, as investors reacted to the FOMC decision to taper its bond purchasing program slightly. The S&P 500 index closed 1.7% up, breaking above the level of 1,800 and testing the resistance at 1,810-1,815, marked by the November 29 all-time high of 1,813.55. The market may continue its long-term uptrend, however there is some double top pattern formation risk. The nearest important support is at the psychological 1,800, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, with index futures currently between 0.0% and -0.2%. The European stock market indexes have gained 1.0-1.4% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Existing Home Sales, Philadelphia Fed Index and the Leading Indicators at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, after rallying up to around 1,800-1,805. The nearest resistance is at 1,810, marked by the earlier highs, as the 15-minute chart shows:

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

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

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Thank you,
Paul Rejczak