Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains neutral, and our short-term outlook is 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 gained between 1.1% and 1.3% on Friday, extending their short-term consolidation, as investors reacted to economic data announcements, oil prices rebound, among others. The S&P 500 index continues to fluctuate along the level of 2,000. The nearest important resistance level is at around 2,020, marked by recent local highs. On the other hand, level of support remains at 1,990-2,000, as we can see on the daily chart:

Expectations before the opening of today’s trading session are positive, with index futures currently up 0.3-0.5%. The main European stock market indexes have gained 0.1-0.8% so far. Investors will now wait for the NAHB Housing Market Index release at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it trades close to the level of 2,020. The nearest important support level remains at 2,000-2,010, among others:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it extends its short-term move up. The nearest important resistance level is at around 4,190, marked by previous local high, and support level remains at 4,100-4,120, as the 15-minute chart shows:

Concluding, the broad stock market extended its short-term consolidation on Friday, as the S&P 500 index rebounded following last week’s move down. There is still no clear short-term direction. For now, it looks like a volatile medium-term consolidation following last year’s October-November rally. We prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.

Thank you.

Paul Rejczak
Stock Trading Strategist
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