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

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

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 gained between 1.1% and 1.5% on Tuesday, extending their short-term uptrend, as investors reacted to some better-than-expected economic data announcements, ahead of today’s FOMC Rate Decision release, among others. The S&P 500 index broke above late September – early October consolidation, which is positive. The nearest important level of support is at around 1,970-1,980, marked by previous resistance level. On the other hand, the level of resistance is at 2,000-2,020, marked by all-time high of 2,019.26, as we can see on the daily chart:

Expectations before the opening of today’s trading session are virtually flat. The European stock market indexes have gained 0.2-0.7% so far. Investors will now wait for the FOMC Rate Decision announcement at 2:00 p.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, as it fluctuates along the level of 1,975. The nearest important resistance level is at around 1,980-1,985, and the level of support remains at 1,970, among others, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is relatively weaker, following yesterday’s worse-than-expected quarterly earnings releases. The nearest important level of resistance is at around 4,100. On the other hand, the level of support is at 4,060-4,070, marked by some recent local extremes:

Concluding, the broad stock market extended its move up, as the S&P 500 index broke above late September – early October consolidation. We 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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