Briefly: In our opinion no speculative positions are justified.
Our intraday outlook remains neutral, and our short-term outlook is now neutral, following last week’s move up:
Intraday
(next 24 hours) outlook: neutral
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 gained between 0.3% and 0.7% on Monday, extending their recent move up, as investors awaited this week’s quarterly corporate earnings releases, among others. The S&P 500 index trades within its March consolidation, following a rebound off the support at around 1,800-1,810. The nearest important resistance is at 1,880-1,900, marked by the April 4 all-time high of 1,897.28. For now, it looks like some further medium-term fluctuations along the December-January local highs, as we have stated in our last alert: “(…)this week’s move up doesn’t look so corrective anymore. However, there is still no clear medium –term uptrend, as the S&P 500 index continues to consolidate along its December-January local highs.”:
Expectations before the opening of today’s session are virtually flat, with index futures currently mixed between -0.1% and +0.1%. The European stock market indexes have gained 0.7-1.2% so far. Investors will now wait for some economic data announcements: FHFA Housing Price Index at 9:00 a.m., Existing Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) continues its short-term move up, testing the resistance level of 1,865-1,870. The nearest important support is at around 1,850-1,855, and the next resistance is at 1,890-1,900, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) remains in an intraday uptrend, as it is closer to the resistance level at 3,580-3,600. For now, it looks like a correction within the recent downtrend. However, there have been no confirmed short-term negative signals so far, as we can see on the 15-minute chart:
Concluding, there is no clear short-term direction, as last-week’s move up doesn’t look corrective. One can bet that the broad stock market is on the way to new all-time highs. However, there is some strong resistance level at 1,880-1,900.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
