Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).

Our intraday outlook is bullish, and our short-term outlook remains neutral:

Intraday (next 24 hours) outlook: bullish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The main U.S stock market indexes gained 0.2-0.4% on Friday, extending their recent fluctuations, as investors remained uncertain following some mixed economic data announcements, Fed releases. The S&P 500 index remains close to the resistance of 1,880-1.900. On the other hand, the level of support is at 1,850, among others. There have been no confirmed negative signals so far. For now, it looks like a flat correction within long-term uptrend, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.2-0.3%. The European stock market indexes have been mixed between -0.1% and +0.3%. The S&P 500 futures contract (CFD) extends its short-term consolidation, as it trades below the resistance level of 1,880-1,885. The nearest support remains at around 1,855-1,860. Still with no clear direction, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is in a similar short-term consolidation, fluctuating below the level of resistance at 3,600. On the other hand, the support is at 3,500. There have been no confirmed negative signals so far. However, there is also no clear direction:

Concluding, the broad stock market extends its short-term consolidation, as it trades slightly below two-month long resistance. In our opinion, it is not the time to be out of the long position just yet, because there have been no confirmed sell signals. Our long positions remain profitable, but it seems that they will become even more profitable in the coming days. Our stop-loss remains at 1,850 (S&P 500 index).

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts