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): neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes lost between 0.3% and 0.6% on Tuesday, retracing some more of their last week's move up, as investors continued to take short-term profits off the table. The S&P 500 index broke below the level of 2,100. The nearest important level of resistance is at around 2,110-2,120, marked by February 25 all-time high of 2,119.59, among others. On the other hand, support level is at 2,080-2,090, marked by previous local extremes, as we can see on the daily chart:

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: MBA Mortgage Index at 7:00 a.m., Durable Orders at 8:30 a.m. The S&P 500 futures contract (CFD) trades within a short-term consolidation following yesterday's decline. For now, it looks like a flat correction within a short-term downtrend. The nearest important level of support is at around 2,080-2,085:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades within an intraday consolidation. The nearest important level of resistance is at around 4,430-4,450. On the other hand, support level is at 4,420, as the 15-minute chart shows:

Concluding, the broad stock market extended its short-term decline, as investors continued to take profits after recent move up. However, there have been no confirmed negative signals so far. For now, it looks like some further medium-term consolidation, following last year's October-November 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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