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 1.0-1.1% yesterday, rebounding from last week’s decline, as investors hoped for a downtrend reversal. The S&P 500 index has retraced half of its recent move down (50% retracement at 1,861.6 vs. yesterday’s high of day at 1,862.3). The next important downtrend retracement is the 61.8% golden ratio at 1,866.8. The resistance remains at around 1,865-1,870, and the nearest important support is at  1,840-1,850. For now, it looks like a correction within a short-term downtrend, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up between 0.2% and 0.3%. The main European stock market indexes have gained 0.3-0.9% so far. Investors will now wait for some economic data announcements: Housing Starts, Building Permits and Consumer Price Index at 8:30 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow intraday range so far, following yesterday’s rebound. The support remains at around 1,830-1,840, and the nearest important resistance is at 1,855-1.860, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) fluctuates around the level of 3,650, following a rebound. The support is at the psychological 3,600, and the nearest resistance is at 3,670. For now, it looks like a correction within short-term downtrend, however some sort of a downtrend reversal pattern (i.e. head and shoulders pattern)cannot be ruled out:

Thank you.

Paul Rejczak
Stock Trading Strategist
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