Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,910, S&P 500 index).
Our intraday outlook is neutral, and our short-term outlook remains bullish:
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 main U.S. stock market indexes were virtually flat on Monday, as investors hesitated following recent decline. Our yesterday’s neutral intraday outlook has proved to be quite right. The S&P 500 index extends its short-term consolidation, following last week’s downward correction. The resistance level remains at around 1,950-1,955, marked by the June 9 all-time high of 1,955.55. On the other hand, the nearest important level of support is at 1,915-1,925, marked by late May – early June consolidation. For now, it looks like a correction within a long-term uptrend, as we can see on the daily chart:
Expectations before the opening of today’s session are slightly positive, with index futures currently up 0.1-0.2%. The European stock market indexes have gained 0.1-0.4% so far. Investors will now wait for some economic data announcements: Housing Starts, Building Permits, Consumer Price Index at 8:30 a.m. The S&P 500 futures contract (CFD) extends its short-term consolidation, as it trades slightly below last week’s highs. The nearest important level of support is at around 1,925, and the resistance level is at 1,940, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) is in an analogous consolidation, following recent move down. The resistance level is at around 3,800, and the nearest important level of support is at 3,750-3,760. There is no clear short-term direction, as we can see on the 15-minute chart:
Concluding, the broad stock market extends its fluctuations, as it trades slightly below last week’s all-time high. We remain cautiously optimistic, expecting some more upside. Therefore, we continue to maintain our already profitable long position, with stop-loss (or rather protect-gain in this case) at 1,910 - S&P 500 index.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
