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 main U.S. stock market indexes lost between 1.2% and 1.7% on Friday, extending their short-term consolidation, as investors reacted to monthly jobs report release, among others. The S&P 500 index continues to trade below the level of 2,000. The nearest important level of resistance is at around 1,980-2,000. On the other hand, support level is at 1,850-1,950. There have been no confirmed positive signals so far. For now, it looks like a flat correction within a downtrend:

Expectations before the opening of today's trading session are positive, with index futures currently up 1.5%. The European stock market indexes have gained 1.8-2.2% so far. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it gets closer to last week's local highs. The nearest important level of resistance is at 1,970, and support level is at 1,930-1,940, among others, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it breaks above the level of 4,200. The nearest important level of support is at 4,240, and resistance level is at 4,300, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short term consolidation on Friday. There have been no confirmed positive signals so far. For now, it looks like a consolidation following recent decline. 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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