Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).
Our intraday outlook is still bullish, and our short-term outlook remains neutral:
Intraday
(next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes lost 0.4-0.8% on Tuesday, as investors continued to hesitate, following last week’s volatile trade. The S&P 500 index extends its medium-term sideways trend, consolidating below the level of resistance at 1,880-1,990. There is no clear short-term direction as well. The nearest important level of support is at around 1,860-1,865, and the next support is at 1,850, marked by the late April local low, among others. There have been no confirmed negative signals so far, as we can see on the daily chart:
Expectations before the opening of today’s session are positive, with index futures currently up 0.3%. The main European stock market indexes have been mixed between -0.2% and +0.3% so far. Investors will now wait for the FOMC Minutes announcement at 2:00 p.m. The S&P 500 futures contract (CFD) trades within month-long consolidation (excluding recent rally, followed by failure at the resistance of 1,900). The nearest important support is at around 1,855-1,860. There is no clear short-term direction, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) is in an analogous consolidation, as it continues to trade slightly below the resistance of 3,620. The support remains at around 3,550. Series of higher highs and higher lows may be considered as positive:
Concluding, the broad stock market moves sideways, as it is within month-long consolidation, below the level of resistance at 1,880-1,900. We continue to maintain our speculative long position, with stop loss at 1,850 (S&P 500 index). In our opinion, holding short-term long positions is still justified, as there have been no confirmed sell signals.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
