The main U.S. stock market indexes gained between 0.3% and 0.6% on Friday, extending their long-term uptrend as investors hoped that the Fed stimulus will continue. The S&P 500 index reached a new all-time high at 1,804.48, which is slightly above last Monday’s high of 1,802.33. The S&P 500 continues its recent move up, however a double top pattern cannot be excluded here. The support remains at around 1,770-1,775, marked by late October, early November consolidation, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently gaining 0.4%. The European stock market indexes have gained 0.4-0.5% so far. Investors will now wait for the Pending Home Sales announcement for the month of October at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, above Friday’s closing price. The nearest support is at around 1,800, and the nearest short-term resistance is at 1,810, as the 15-minute chart shows:

Our intraday outlook remains bearish, and our short-term outlook is bearish:

Intraday (next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

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Thank you,
Paul Rejczak