Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is 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
The U.S. stock market indexes gained 0.2-0.4% on Monday, slightly extending their long-term uptrend, as investors kept buying stocks. The S&P 500 index has reached yet another new all-time high at the level of 2,038.70. Potential resistance level is at around 2,050. On the other hand, the nearest important level of support remains at 2,020-2,025, marked by previous local extremes. There have been no confirmed negative signals so far, however, we can see overbought conditions which may lead to a downward correction:
Expectations before the opening of today’s trading session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have gained 0.2-0.4% so far. The S&P 500 futures contract (CFD) trades close to its new all-time high, as it fluctuates along the level of 2,035. The nearest important resistance level is at around 2,035-2,040, among others. On the other hand, the level of support remains at 2,020-2,030, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it reaches new long-term highs. Potential resistance level is at around 4,200, and the nearest important level of support is at 4,130-4,150, marked by recent consolidation, as the 15-minute chart shows:
Concluding, the broad stock market continued its move up yesterday, as it reached new all-time high. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions which may lead to a downward correction at some point in time. We still prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.
Thank you.
Paul Rejczak
Stock Trading Strategist
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