Briefly: Our intraday outlook is neutral, and our short-term outlook is bullish, following a breakout above consolidation:
Intraday
(next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: bullish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The main U.S. stock market indexes were virtually flat on Tuesday, losing 0.1%, as investors continued to hesitate following recent advance. The S&P 500 index remained slightly below Monday’s all-time high of 1,925.88. The resistance is at around 1,925, and the nearest important support level is at the psychological 1,900, marked by previous resistance. There have been no confirmed negative signals so far. For now, it looks like a flat correction within uptrend, as we can see on the daily chart:
Expectations before the opening of today’s session are slightly negative, with index futures currently down 0.1-0.2%. The European stock market indexes have lost between 0.2% and 0.4% so far. Investors will now wait for some economic data announcements: ADP Employment Change number at 8:15 a.m., Trade Balance, Productivity at 8:30 a.m., ISM Services at 10:00 a.m., and finally, the Fed’s Beige Book release at 2:00 p.m. The S&P 500 futures contract (CFD) remains within a relatively narrow short-term consolidation, as it trades above the support of 1,915, and below the resistance of 1,925. For now, it looks like a flat correction within an uptrend, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) is in an analogous consolidation, following recent move up. The resistance level is at around 3,740, and the nearest important support is at 3,710-3,720, marked by some of the recent local lows:
Concluding, the broad stock market extends its short-term consolidation, following recent rally. We continue to maintain our already profitable long position, expecting the continuation of the long-term uptrend. The stop-loss remains at 1,885 (S&P 500 index).
Thank you.
Paul Rejczak
Stock Trading Strategist
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