Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains 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 lost between 1.3% and 2.6% on Tuesday, retracing their recent move up, as investors reacted to economic data announcements, quarterly corporate earnings releases. The S&P 500 index bounced off resistance level at 2,060-2,065, marked by previous local highs. On the other hand, the nearest important level of support is at around 2,020-2,030, marked by some previous local extremes. The broad stock market remains in a volatile three-month long consolidation, following last year's October-November rally, as we can see on the daily chart:

Expectations before the opening of today's trading session are mixed, as investors react positively to Apple's quarterly earnings release. The main European stock market indexes have lost 0.3-0.6% so far. Investors will now wait for some economic data announcements: MBA Mortgage Index at 7:00 a.m., FOMC Rate Decision at 2:00 p.m. The S&P 500 futures contract (CFD) extends its short-term consolidation, as it fluctuates along the level of 2,030-2,050. The nearest important support level is at around 2,010-2,020, marked by yesterday's low:

The technology Nasdaq 100 futures contract (CFD) bounced off following yesterday's move down, as investors reacted to quarterly corporate earnings releases. It is currently above the level of 4,200. The nearest important level of resistance is at 4,220-4,230, among others, as the 15-minute chart shows:

Concluding, the broad stock market sold off yesterday, however, it managed to regain some of its losses in the after-hours trade. It continues to look like a volatile medium-term consolidation following last year's October-November rally. 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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