Briefly: In our opinion, no speculative positions are justified
Our intraday outlook is 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 lost 0.3-0.4% on Monday, as investors continued to hesitate ahead of Thursday's FOMC Rate Decision release. The S&P 500 index extends its short-term consolidation, as it remains below the level of 2,000. The nearest important level of resistance is at 1,980-2,000. On the other hand, support leel is at 1,900-1,920, marked by local lows. There have been no confirmed positive signals so far. It still looks like a correction following late August sell-off:
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: Retail Sales, Empire Manufacturing at 8:30 a.m., Industrial Production, Capacity Utilization at 9:15 a.m., Business Inventories at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, as it extends yesterday's uncertainty. The nearest important level of resistance is at around 1,950, and support level is at 1,920-1,930, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) continues to trade along the level of 4,300. The nearest important level of resistance is at 4,310-4,320, marked by local highs. On the other hand, support level is at 4,260-4,280, among others, as we can see on the 15-minute chart:
Concluding, the broad stock market extends its short-term consolidation even further, as investors await Fed's Rate Decision announcement later this week. There have been no confirmed positive signals so far. 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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