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

The U.S. stock market indexes gained 1.4-1.5% yesterday, erasing their recent losses as investors reacted positively to geopolitical news concerning Russia-Ukraine conflict. The S&P 500 index has reached new all-time high at 1,873.23, which confirms its long-term uptrend. The nearest important support is at around 1,865-1,870, marked by Friday’s local top. The next support remains at around 1,850-1,860. Will the uptrend continue? For now, there have been no confirmed reversal signals, however we can see some overbought conditions:

Expectations before the opening of today’s session are virtually flat, with index futures mixed between -0.1% and 0.0%. The European stock market indexes have lost 0.3-0.6% so far. Investors will now wait for some economic data announcements: ADP Employment Change report at 8:15 a.m., ISM Services number at 10:00 a.m., Fed’s Beige Book release at 2:00 p.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, following recent advance. The resistance is at around 1,875. On the other hand, the support level is at 1,855, among others, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) fluctuates near its Friday’s high. The resistance is at around 3,720. For now, it looks like a flat correction within an uptrend, however some sort of a double-top pattern formation cannot be excluded here, as the 15-minute chart shows:

Thank you.

Paul Rejczak
Stock Trading Strategist
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