The U.S. stock market indexes gained between 0.5% and 1.2% yesterday, as investors hoped that the future Federal Reserve Policy will continue to be easy, thanks to the new chairman Janet Yellen. The S&P 500 managed to reach a new all-time high at 1,782.00, breaking above the resistance of 1,770-1,775. It marks the nearest important support, and a breakout above the recent consolidation is a positive signal. Potential resistance is at the psychological 1,800:
Expectations before the opening of today’s session are mixed, as investors react to worse-than-expected quarterly earnings release from Cisco Systems. The main European stock market indexes have gained 0.8-0.9% so far. Investors will now wait for some economic data announcements: Initial Claims, Trade Balance, Productivity and Unit Labor Costs at 8:30 a.m. The S&P 500 futures contract (CFD) trades near its all-time high. The nearest important support is at 1,770, marked by the previous resistance, as we can see on the 15-minute chart:
Despite being wrong recently, our intraday outlook remains bearish, and our short-term outlook is bearish:
Intraday outlook: bearish
Short-term outlook: bearish
Medium-term outlook: neutral
Long-term outlook: bullish
The above analysis is the first of today's 2+ Stock Trading Alerts. Stay as updated as possible on the current events and trends on the
stock market by choosing ourStock Trading Alert subscription service
Thank you,
Paul Rejczak