Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is bullish, and our short-term outlook remains neutral:
Intraday
(next 24 hours) outlook: bullish
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 1.6% on Monday (making our long positions more profitable), as investors started buying stocks again with renewed confidence. The S&P 500 index has reached a new closing all-time high of 1,896.65, remaining slightly below April 4 an intraday all-time high of 1,897.28. The nearest important resistance is at the psychological 1,900. On the other hand, the level of support is at around 1,860, and the next support is at 1,850, as we can see on the daily chart:
Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have gained 0.1-0.5% so far. The sentiment has worsened slightly following worse-than-expected German economic data release. Investors will now wait for some U.S. economic data announcements: Retail Sales number at 8:30 a.m., Business Inventories at 10:00 a.m. The S&P 500 futures contract (CFD) broke above the resistance level at 1,880-1,885, which is a positive sign. Potential resistance is at the psychological level of 1,900:
The technology Nasdaq 100 futures contract (CFD) trades close to its recent local highs, as it remains relatively weaker than the broad market. The nearest resistance is at around 3,650-3,660, marked by the early April local highs. On the other hand, the support is at around 3,580, as the 15-minute chart shows:
Concluding, the broad stock market seems to continue its long-term uptrend. Our speculative long position extends its gain, and our stop-loss remains at the level of 1,850 (S&P 500 index) for now.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
