Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,090 and profit target at 1,980, S&P 500 index)
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes were mixed between -0.7% and +0.1% on Tuesday, extending their short-term uncertainty, as investors awaited today's FOMC decision release. The S&P 500 index continues to fluctuate along the resistance level of 2,080. On the other hand, level of support remains at 2,060-2,065, marked by some previous local extremes. For now, it looks like an upward correction within a downtrend, as we can see on the daily chart:
Expectations before the opening of today's trading session are negative, with index futures currently down 0.2-0.3%. The main European stock market indexes have been mixed so far. Investors will now wait for the FOMC Rate Decision announcement at 2:00 p.m. The S&P 500 futures contract (CFD) is in an intraday downtrend, as it retraces yesterday's move up. The nearest important level of support is at around 2,050-2,055, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) bounced off resistance level at around 4,380. The nearest important support level is at around 4,340, marked by recent local low. For now, it looks like an upward correction within a short-term downtrend:
Concluding, the broad stock market remains within a short-term consolidation. For now, it looks like a correction following early March decline. We continue to maintain our speculative short position (opened on February 18 at 2,099.16, S&P 500 index), as we expect some more downside. Stop-loss level is at 2,090 (S&P 500 index) and potential profit target is at 1,980. You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. It is always important to set some exit price level in case some events cause the price to move in the unlikely direction. Having safety measures in place helps limit potential losses while letting the gains grow.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
