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 were mixed between -0.4% and +0.1% on Thursday, as investors hesitated following recent fluctuations, ahead of today's monthly jobs report release, among others. The S&P 500 index remains below the level of 2,000. On the other hand, support level is at 1,900. The nearest important level of resistance is at around 1,980-2,000. There have been no confirmed positive signals so far. For now, it looks like a correction within a short-term downtrend:
Expectations before the opening of today's trading session are negative, with index futures currently down 1.1%. The European stock market indexes have lost 1.7-2.1% so far. Investors will now wait for the monthly jobs data announcement: Nonfarm Payrolls, Unemployment Rate at 8:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend. The nearest important level of resistance is at around 1,930-1,940, and support level is at 1,900, marked by yesterday's local lows, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it extends its short-term downtrend this morning. The nearest important level of resistance is at 4,200, and support level is at 4,120-4,160, marked by previous local lows, as we can see on the 15-minute chart:
Concluding, the broad stock market remains within a short term consolidation, following late August sell-off. There have been no confirmed positive signals so far. For now, it looks like a consolidation following recent decline. 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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