Briefly: In our opinion, no speculative positions are justified.

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

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

The U.S. stock market indexes lost 0.3-0.5%, extending Friday's move down, as investors continued to hesitate following economic data announcements, quarterly corporate earnings releases. The S&P 500 index remains within its medium-term consolidation, as it trades along the level of 2,050. The nearest important resistance level is at around 2,060-2,070, marked by local highs. On the other hand, support level is at 2,020-2,030, among others:

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1%. The European stock market indexes have been mixed so far. Investors will now wait for the Wholesale Inventories number release at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, following yesterday's move down. The nearest important support level is at 2,035-2,040, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) is in a similar intraday consolidation, as it remains above the level of 4,200. On the other hand, resistance level is at 4,030-4,040. For now, it looks like a downward correction within a short-term uptrend, as the 15-minute chart shows:

Concluding, the broad stock market extended its recent fluctuations, as the S&P 500 index moved along the level of 2,050. There is no clear short-term direction. We still 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
Stock Trading Alerts