Briefly: In our opinion, no speculative positions are justified
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes gained 1.2-1.4% on Tuesday, extending their recent fluctuations, as investors awaited tomorrow's FOMC Rate Decision announcement. The S&P 500 index continues to trade below the level of 2,000. The nearest important level of resistance is at 1,980-2,000. On the other hand, support level is at around 1,950, and the next level of support is at 1,900-1,920, marked by local lows. There have been no confirmed positive signals so far. It still looks like a correction following late August sell-off:
Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have gained 0.4-1.4% so far. Investors will now wait for some economic data announcements: Consumer Price Index at 8:30 a.m., NAHB Housing Market Index at 10:00 a.m., Crude Inventories at 10:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, following yesterday's move up. The nearest important level of support is at 1,950-1,950, and resistance level is at 1,980-2,000, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) trades along the level of 4,350 today morning. The nearest important level of resistance is at 4,360-4,370, and support level is at 4,300-4,320, as we can see on the 15-minute chart:
Concluding, the broad stock market retraced most of its recent move down yesterday, as investors awaited Thursday's FOMC Rate Decision release. However, there have been no confirmed positive signals so far. We 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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