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 gained between 0.6% and 1.2%, extending their recent move up, as investors reacted to some positive geopolitical news, quarterly corporate earnings releases. The S&P 500 index got very close to its December 29th all-time high of 2,093.55. The nearest important resistance level is at around 2,090-2,100. On the other hand, level of support is at 2,070-2,075, marked by some previous local highs. There have been no confirmed negative signals so far, however, the index remains within three-month long consolidation:

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have gained 0.6-0.7% so far. Investors will now wait for the Michigan Sentiment number announcement at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it trades slightly higher. The nearest important resistance level is at around 2,100, and support level is at 2,070, 2,080, marked by previous level of resistance, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) remains relatively stronger, as it reaches new long-term high. The nearest important level of support is at around 4,300-4,320, marked by previous resistance level. There have been no confirmed negative signals so far, however, we can see some short-term overbought conditions:

Concluding, the broad stock market extended its short-term uptrend, as it got close to last year's all-time high. 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
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