Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains 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): neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes gained 0.3-0.8% on Friday, extending their short-term uptred, as investors reacted to positive geopolitical news, quarterly corporate earnings releases, among others. The S&P 500 index has reached a new all-time high of 2,097.03, which is slightly above its December high of 2,093.55. The nearest important support level is at around 2,070-2,080, marked by previous level of resistance. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions:
Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Empire Manufacturing number at 8:30 a.m., NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract (CFD) is in a short-term consolidation, as it trades close to last week's high. The nearest important resistance level is at around 2,090-2,100, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,380. The nearest important level of resistance is at 4,380-4,400. On the other hand, support level is at 4,350-4,360, among others, as the 15-minute chart shows:
Concluding, the broad stock market extended its short-term uptrend on Friday, as it reached new all-time high. However, we can see some short-term overbought conditions which may lead to a downward correction. We still 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
Stock Trading Alerts
