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

Intraday (next 24 hours) outlook: bearish
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 gained between 1.1% and 1.2% yesterday, extending their recent move up, as investors reacted positively to Federal Reserve Chairwoman Janet Yellen’s testimony before Congress. The S&P 500 index broke above the level of 1,800, retracing more than 61.8% of its late January decline (the 61.8% golden ratio retracement at 1,807.7). The nearest important resistance is at 1,820-1,850, marked by the December-January topping consolidation. Will the long-term uptrend continue? For now, it looks like a quite volatile medium-term consolidation, as there has been practically no clear market direction since last November:

Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.2%. The European stock market indexes have gained 0.3-1.0% so far. The S&P 500 futures contract (CFD) has made back most of its recent losses. Buyers hope for a continuation of the long-term uptrend. The resistance is at around 1,830-1,845, and the nearest important support is at the psychological 1,800, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) is relatively stronger, as it trades near its late January long-term high. The resistance is at 3,630-3.640, and the nearest support is at around 3,600. There are no confirmed short-term uptrend reversal signals, however, we can see some overbought conditions:

Thank you.

Paul Rejczak
Stock Trading Strategist
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