Our intraday outlook is neutral, and our short-term outlook remains neutral, as there may be some further consolidation:

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 main U.S. stock market indexes lost between 0.3% and 0.9% on Friday, extending their short-term sideways trend as investors reacted to some mixed economic data announcements and quarterly earnings releases. The S&P 500 index remains below the resistance of 1,800-1,810, which is a negative signal. On the other hand, the support is at around 1,770-1,775, marked by the October-December local extremes, and last-year’s upward trend line. For now, it looks like a flat correction within a downtrend, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly negative, with index futures currently down 0.2%. The European stock market indexes have lost 0.2-0.7% so far. Investors will now wait for some economic data announcements: ISM Index and Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a week-long consolidation. The resistance is at 1,790-1,800, and the support is at 1,760-1,770. Will it break down below, extending recent declines? There is no clear short-term trend, as the 15-minute chart shows:

The Nasdaq 100 futures contract (CFD) is in an analogous consolidation, following recent move down. The resistance is at 3,520-3,540, and the support remains at around 3,550-3,570. There have been no confirmed downtrend reversal signals so far:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts