Briefly: In our opinion no speculative positions are justified.

Our intraday outlook is neutral, and our short-term outlook remains 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 lost 0.9-1.1% on Monday, extending recent move down, as investors intensified their selling, following some negative geopolitical news concerning Russia-Ukraine conflict, among others. The S&P 500 index has retraced its late March – early April uptrend. The nearest important resistance is at around 1,860-1,865, marked by yesterday’s daily high of 1,864.04. The price is at the support of 1,840-1,850, marked by a month-long consolidation, as the daily chart shows:

Expectations before the opening of today’s session are virtually flat, with index futures fluctuating around yesterday’s closing prices. The main European stock market indexes have lost between 0.4% and 0.7% so far. Investors will now wait for the JOLTS – Job Openings number release at 10:00 a.m. The S&P 500 futures contract (CFD) trades near yesterday’s low, as it tests late March support of 1,830-1,835. For now, there have been confirmed downtrend reversal signals so far, however, we can see some fluctuations, probably a short-covering action:

The technology Nasdaq 100 futures contract (CFD) Fluctuates along the psychological level of 3,500, following recent sharp move down. The support is at around 3,470-3,480, and the nearest important resistance is at 3,540-3,550, marked by yesterday’s bounce high, as we can see on the 15-minute chart:

Thank you.

Paul Rejczak
Stock Trading Strategist
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