Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook is now 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 0.8-1.2% on Wednesday, extending their short-term uptrend, as investors reacted to economic data releases, among others. The S&P 500 index remains within its medium-term consolidation, following October rally. The nearest important level of resistance is at around 2,080-2,100. On the other hand, support level remains at 2,000-2,020:

Expectations before the opening of today's trading session are negative, with index futures currently down 0.2-0.3%. The main European stock market indexes have been mixed so far. Investors will now wait for the Initial Claims number announcement at 8:30 a.m. The S&P 500 futures contract trades within an intraday consolidation, following yesterday's advance. The nearest important level of resistance is at around 2,060, and support level is at 2,050, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades along the level of 4,600. The nearest important level of resistance is at 4,620. On the other hand, support level is at 4,580, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market continued its short-term uptrend on Wednesday, ahead of long holiday weekend. The S&P 500 index extends its two-month long consolidation following October rally. 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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