Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,910, S&P 500 index).
Our intraday outlook remains neutral, and our short-term outlook is bullish:
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 mixed between -0.1% and 0.1% on Monday, as investors hesitated following recent rally. The S&P 500 index fluctuated slightly below Friday’s all-time high of 1,963.91. For now, it looks like a flat correction within an uptrend, however there are some overbought conditions. As of yet, there have been no confirmed negative signals. The nearest important resistance level is at 1,960-1,965. On the other hand, the support remains at around 1,940-1,950, and the next support is at 1,915-1,925, marked by previous consolidation, as we can see on the daily chart:
Expectations before the opening of today’s session are negative, with index futures currently down 0.2-0.3%. The European stock market indexes have lost 0.1-0.3% so far. Investors will now wait for series of economic data announcements: Case-Shiller 20-city index, FHFA Housing Price Index at 9:00 a.m., New Home Sales, Consumer Confidence at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday descending channel, following recent move up. The resistance remains at around 1,955-1,960, and the nearest support level is at 1,940-1,945, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades below the psychological resistance of 3,800. The level of support remains at around 3,780, and the next support level is at 3,750-3,760, marked by previous local lows:
The broad stock market extends its short-term consolidation, as it remains quite close to all-time highs. We continue to maintain our already profitable long position, expecting some more upside. The stop-loss (protect-gain in this case) remains at 1,910 – S&P 500 index.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
