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 gained 0.3-0.8% on Monday, retracing some of their Friday's sell-off, as investors continued to hesitate following last week's fluctuations. The S&P 500 index remains below the level of 2,000. The nearest important level of resistance is at 1,980-2,000. On the other hand, support level is at around 1,950, and the next support level is at 1,900-1,920, marked by previous local lows. There have been no confirmed positive signals so far. For now, it looks like a correction within a downtrend:

Expectations before the opening of today's trading session are negative, with index futures currently down 1.4-1.8%. The main European stock market indexes have lost 2.0-2.9% so far. The S&P 500 futures contract (CFD) is within an intraday downtrend, as it trades below its recent local lows. The nearest important level of resistance is at 1,950-1,960 and support level is at 1,900, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it breaks below support level of 4,300. The nearest important level of support is at around 4,250, and resistance level is at 4,280-4,300, as we can see on the 15-minute chart:

Concluding, the broad stock market retraced some of its last week's move down on Monday. However, investors' sentiment has worsened considerably this morning. There have been no confirmed positive signals so far. It looks like an upward correction within a medium-term downtrend. 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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