The main U.S. stock market indexes lost between 0.2% and 0.5% yesterday, as investors took some profits following recent move up. Also, investors reacted to better-than-expected ISM index number, fearing that the Fed may begin reducing its stimulus program. The S&P 500 index closed slightly above the level of 1,800, still not far from Friday’s intraday all-time high. The resistance remains at around 1,810-1,815, and the nearest important support is at 1,800. The next support is at 1,770-1,775, marked by the late October, early November consolidation followed by recent local low, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly negative, with index futures currently down 0.2-0.4%. The European stock market indexes have lost 0.7-1.4% so far. The S&P 500 futures contract (CFD) broke below the level of 1,800, ending its recent consolidation. The nearest important level of support is at 1,790, and the next support is at around 1,775-1780, marked by late November low, as the 15-minute chart shows:

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

Intraday (next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

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Thank you,
Paul Rejczak