The main U.S. stock market indexes gained between 0.7% and 0.8% on Wednesday, as investors continued buying stocks following recent decline. The S&P 500 index managed to reach a new all-time high at 1,850.84, which is slightly above the December 31 high of 1,849.44. However, the resistance remains at around 1,850, and the support is at around 1,840, marked by yesterday’s daily gap up of 1,839.17-1,840.52. There is some risk of a double top pattern formation, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly negative, with index futures currently down 0.1-0.2%. The European stock market indexes have been mixed between -0.2% and +0.1% so far. Investors will now wait for some economic data announcements: Initial Claims and Consumer Price Index at 8:30 a.m., Philadelphia Fed report and NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract (CFD) trades close to its new high, however, it remains the level of 1,840. The resistance is at around 1,840-1,845, and the nearest important support is at 1,825-1,830, marked by the early January consolidation, as the 15-minute chart shows:

Analogously, the Nasdaq 100 futures contract (CFD) trades close to its new long-term highs. The nearest important level of support is at around 3,570-3,585, marked by some of the recent local highs:

Our intraday outlook is neutral, and our short-term outlook is now 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

Thank you,
Paul Rejczak