Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,885, S&P 500 index).

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 U.S. stock market indexes were mixed between 0.0% and +0.2% on Friday, as investors hesitated following recent rally. Our Friday’s neutral intraday outlook has proved to be quite accurate. However, the S&P 500 index has managed to reach yet another new all-time high at 1,924.03. The nearest important support is at 1,880-1,900, marked by previous resistance. There have been no confirmed negative signals so far, although, we can see some short-term overbought:

Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.1%. The main European stock market indexes have gained 0.1-0.3% so far. Investors will now wait for some economic data announcements: ISM Index, Construction Spending, Factory Orders at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow intraday range, remaining close to its recent high. The nearest support is at around 1,910-1,915, and the resistance is at 1,925, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) continues to fluctuate, as it trades slightly below the short-term resistance of 3,740. There have been no confirmed negative signals so far. On the other hand, the support level is at 3,700-3,710, as the 15-minute chart shows:

Concluding, the broad stock market remains in a short-term uptrend, as it extends five-year long bull market. We continue to maintain our already profitable long position, with stop-loss at 1,885 (S&P 500 index). In other words, we let the profit run while there is an uptrend.

Thank you.

Paul Rejczak
Stock Trading Strategist
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