Let’s start today’s Stock Trading Alert with an important administrative announcement.

As you may know, we have recently launched a survey (thank you for participating) in which we asked about the amount of trading alerts per day that you require. The answer that (decisively) won, was 1 alert per day + extra alerts whenever the situation changes and an additional alert is necessary. Additional alerts didn't seem to change much from your point of view.

Consequently, starting next week, we will change the way we provide you with our Stock Trading Alerts. Instead of 3 smaller trading alerts (1 posted before the market open and 2 posted during the session), we will be posting 1 slightly bigger trading alert (before the opening bell) along with a promise to keep you updated via another trading alert, should anything change in our outlook.

In this way, you will be better prepared before the markets open, and at the same time you will remain up-to-date virtually at all times.

The U.S. stock market indexes gained between 0.4% and 0.6% on Tuesday, extending their recent move up. The S&P 500 index reached yet another new all-time high at 1,849.44. The nearest important support remains at 1,829.75-1,834.96, marked by last Thursday’s daily gap up. On the other hand, a potential resistance is at around 1,850. For now, there are no confirmed uptrend reversal signals, however, we can see some overbought, as the daily chart shows:

Expectations before the opening of today’s session are negative, as investors may take some profits off the table. The main European stock market indexes have lost between 0.5% and 1.0% so far. Investors will now wait for the economic data announcements: Initial Claims at 8:30 a.m. and Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) trades within recent short-term consolidation, after retracing Tuesday’s move up. The support is at around 1,830, and the resistance remains at 1,840-1,845, as we can see on the 15-minute chart:

Our intraday outlook is 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

Thank you,
Paul Rejczak