Our intraday outlook is bearish, and our short-term outlook remains 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 main U.S. stock market indexes lost between 0.4% and 1.1% yesterday, as investors reacted to worse-than-expected economic data release from China, taking some profits off the table following recent move up. The S&P 500 index extended its month-long consolidation, as it got close to the support at around 1,810-1,815. On the other hand, the resistance remains at 1,840-1,850, marked by the January 15 all-time high of 1,850.84, as we can see on the daily chart:

Expectations before the opening of today’s session are negative, with index futures currently down 0.8%. The European stock market indexes have lost 1.1-1.6% so far. The S&P 500 futures contract (CFD) extends its short-term move down, as it tests the support at around 1,800-1,810, marked by the January 13 local low. The nearest important resistance remains at around 1,825-1,830, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) remains relatively stronger, however, analogously moving down after bouncing off recent highs. The resistance is at 3,620-2,635, and the nearest support is at around 3,585:

Thank you.

Paul Rejczak
Stock Trading Strategist
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