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 were mixed between -0.1% and +0.1% on Monday, as investors hesitated following recent move up. The S&P 500 index has managed to reach yet another new all-time high at the level of 2,093.55. The nearest important level of resistance is at around 2,090-2,100. On the other hand, support level remains at around 2,080, marked by some previous local highs. There have been no confirmed negative signals so far, however, we can see overbought conditions accompanied by negative technical divergences:

Expectations before the opening of today’s trading session are slightly negative, with index futures currently down 0.2-0.3%. The main European stock market indexes have lost 0.7-0.9% so far. The S&P 500 futures contract (CFD) is in an intraday downtrend, as it extends its short-term consolidation along the level of 2,080. The nearest important resistance level remains at around 2,090, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues to fluctuate along the level of 4,300. The nearest  important level of resistance is at 4,320, and support level is at 4,280-4,300, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short-term consolidation, as volatility remained relatively low ahead of year’s end. We can see some short-term overbought conditions, however, there have been no confirmed negative signals so far. Therefore, 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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