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

Intraday (next 24 hours) outlook: bearish
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 0.1-0.6% on Monday, extending their recent move up, as market sentiment continued to improve ahead of testimony from Fed Chief Janet Yellen. The S&P 500 index is back near the level of 1,800, slightly above the late January consolidation, which is a positive signal. However, there have been no confirmed downtrend reversal so far. The nearest important resistance is at around 1,808, marked by the 61.8% retracement of the recent decline (1,807.7). Will this short-term uptrend continue? On the other hand, the support is at around 1,770-1,775, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.5%. The main European stock market indexes have gained 0.9-1.3% so far. Investors will now wait for some economic data announcements: JOLTS – Job Openings report and the Wholesale Inventories number at 10:00 a.m. The S&P 500 futures contract (CFD) continues its short-term uptrend, as it breaches 1,800 level once again. The support remains at around 1,765-1,770, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract is relatively stronger, as it has retraced most of its recent move down. The nearest important resistance is at around 3,620-3,640, marked by the late January topping consolidation. On the other hand, the support remains at 3,520-3,540:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts