Our intraday outlook remains 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 0.5-0.6% yesterday, retracing Wednesday’s decline, as investors bet that the long-term uptrend will continue. The S&P 500 index trades close to its January 15 all-time high of 1,850.84. The resistance is at around 1,840-1,850, and the nearest important support is at 1,800-1,810. The market continues to fluctuate within the December-January consolidation, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly positive, with index futures up between 0.1% and 0.2%. The main European stock market indexes have gained 0.2% so far. Investors will now wait for the Existing Home Sales announcement at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, close to its long-term highs. The resistance is at around 1,840, and the nearest support is at 1,820-1,830, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) remains close to its recent high, slightly below the resistance of 3,690-3,700. On the other hand the support remains at around 3,640. Will the uptrend continue? For now, it looks like a week-long consolidation:

Thank you.

Paul Rejczak
Stock Trading Strategist
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