The U.S. stock market indexes gained between 0.7% and 1.9% yesterday, retracing their Monday’s decline as investors hoped for better-than-expected corporate quarterly earnings releases as well as some more positive economic data announcements. The S&P 500 index bounced off the support at around 1,810, which is a positive signal. The resistance remains at 1,840-1,850, marked by the December 31 all-time high of 1,849.44. The market continues to consolidate, following year-end rally, still with no clear short-term direction, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.2-0.3%. The main European stock market indexes have gained 0.3-0.9% so far. Investors will now wait for some economic data announcements: Producers Price Index and Empire Manufacturing number at 7:30 a.m., Fed’s Beige Book release at 2:00 p.m. The S&P 500 futures contract (CFD) is back in its recent consolidation. The resistance is at 1,840, and the nearest support is at around 1,825:

The Nasdaq 100 futures contract (CFD) bounced off the psychological support at around 3,500, retracing almost all of its recent decline. The nearest resistance is at 3,585-3,590, marked by the late December highs. On the other hand, the support is at around 3,560-3,570, as the 15-minute chart shows:

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

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

Thank you,
Paul Rejczak