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 U.S. stock market indexes lost between 0.1% and 0.6% on Wednesday, retracing some of their recent move up, as investors took some profits off the table. The S&P 500 index bounced off the nearest resistance level at around 1,950-1,955, marked by Monday’s all-time high of 1,955.55. The nearest important level of support is at 1,940, and the next support is at 1,915-1,925, marked by recent consolidation. For now, it looks like a relatively shallow correction within an uptrend. 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 slightly positive, with index futures currently up 0.1%. The main European stock market indexes have been mixed between 0.0% and +0.2% so far. The S&P 500 futures contract (CFD) remains slightly below its record highs, as it continues to fluctuate below the resistance of 1,950-1,955. The nearest important level of support is at around 1,940, marked by recent local lows. For now, it looks like a consolidation following recent advance, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is close to its long-term high, as it extends fluctuations along the level of 3,800. The support level is at around 3,780. There have been no confirmed negative signals so far:

Concluding, the broad stock market is in a rather flat correction following recent rally. We expect some more upside. Therefore, 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
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