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): neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes gained between 0.9% and 1.5% on Monday, retracing their Friday's decline, as investors reacted to quarterly corporate earnings releases. The S&P 500 index got closer to its February 25 all-time high of 2,119.59, as it approached the level of 2,100. The nearest important resistance level is at around 2,100-2,120, marked by previous local highs. On the other hand, support level is at around 2,070-2,080, marked by recent local lows. There is no clear medium term direction, as we can see on the daily chart:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.3-0.4%. The main European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it continues yesterday's move up. The nearest important level of resistance is at around 2,100-2,105, and support level remains at 2,085-2,090, among others:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues its short-term uptrend. The nearest important level of support is at around 4,400, and potential resistance level is at 4,440-4,450, marked by previous local highs. There have been no confirmed short-term negative signals so far, as the 15-minute chart shows:

Concluding, the broad stock market retraced its Friday's decline yesterday, as investors reacted to quarterly corporate earnings releases, among others. For now, it looks like further medium-term consolidation, following last year's October-November rally. We still 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
Stock Trading Alerts