Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,910, S&P 500 index).

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

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

The main U.S. stock market indexes were virtually flat on Tuesday, as investors continued to hesitate following last week’s rally. The S&P 500 index remains close to Monday’s all-time high of 1,955.55. The resistance level is at 1,950-1,955, and the nearest important level of support is at around 1,940, marked by Monday’s daily gap up of 1,941.74-1,942.41. The next support is at 1,915-1,925, marked by previous consolidation. For now, it looks like a flat correction within an uptrend, however, there are some overbought conditions, as the daily chart shows:

Expectations before the opening of today’s session are negative, with index futures currently down 0.3%. The European stock market indexes have lost between 0.4% and 0.7% so far. The S&P 500 futures contract (CFD) extends its short-term consolidation, as it fluctuates below the resistance level of 1,950-1,955. On the other hand, the nearest important support level is at around 1,935-1,940. There have been no confirmed negative signals so far, however, a downward correction scenario cannot be excluded:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, fluctuating slightly below the level of 3,800. The support level is at around 3,770. For now, it looks like a flat correction within an uptrend, as we can see on the 15-minute chart:

Concluding, the broad stock market is in a short-term consolidation following recent rally. There is some risk of a short-term downward correction, however we continue to maintain our already profitable long position, with stop-loss at 1,910 (S&P 500 index).

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts