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 2.4-2.8% on Tuesday, as investors hunted for bargains following last week's move down. The S&P 500 index got closer to the level of 2,000 again. The nearest important level of resistance is at around 1,980-2,000. On the other hand, support level remains at 1,900-1,920. 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 positive, with index futures currently up 0.9-1.1%. The European stock market indexes have gained 1.9-2.4% so far. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it extends its yesterday's advance. The nearest important level of resistance is at around 1,990-2,000, and support level is at 1,950-1,960, among others, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues its yesterday's uptrend. The nearest important level of resistance is at around 4,400. On the other hand, support level is at 4,300, marked by previous local high, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short-term fluctuations on Tuesday, as it retraced its late last week's sell-off. However, there have been no confirmed positive signals so far. 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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