The main U.S. stock market indexes gained between 0.4% and 0.6% on Friday, as investors hoped for a continuation of the long-term uptrend. The S&P 500 reached its new all-time high at 1,759.82, moving slightly above last Tuesday’s high of 1,759.33. The market remains above the May-October consolidation’s upper limit, which is a positive sign. The nearest support is at 1,733.45-1,735.74, marked by the October 18 daily gap up. The next support is at 1,729.86, marked by the September 19 high. On the other hand, the nearest resistance level seems to be at around 1,760, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently gaining 0.3% vs. their Friday’s closing prices. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Industrial Production and Capacity Utilization at 9:15 a.m., Pending Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) trades near its long-term highs, in the vicinity of 1,760. However, today morning we can see some short-term retracement. The support is at around 1,750-1,755, marked by the recent highs, as the 15-minute chart shows:

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

Intraday outlook: bearish
Short-term outlook: neutral
Medium-term outlook: neutral
Long-term outlook: bullish

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Thank you,
Paul Rejczak