Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains 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 0.5-0.6% on Thursday, accelerating their uptrend, as investors reacted to better-than-expected monthly jobs report release. The S&P 500 index reached a new all-time high at 1,985.89, moving closer to the psychological resistance level of 2,000. On the other hand, the nearest important support level is at around 1,970, marked by some recent local extremes, and the next level of support is at 1,950-1,960. There have been no confirmed negative signals, however, we can see some short-term overbought:
Expectations before the opening of today’s session are slightly negative, with index futures currently down 0.1%. The European stock market indexes have lost between 0.1% and 0.4% so far. The S&P 500 futures contract (CFD) is in a relatively narrow intraday range, following recent rally. The resistance level is at around 1,975-1,980, and the nearest level of support is at 1,965, marked by recent consolidation, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) broke above the level of 3,900, reaching new long-term highs. The nearest level of support is at 3,900, and a potential resistance level is at around 3,915-3,920. There are some overbought conditions, however, there have been no confirmed negative signals so far:
Concluding, the broad stock market rallied to new all-time highs last week, as the S&P 500 index moved closer to the level of 2,000. There have been no confirmed negative signals so far, however, we can see some short-term overbought which may lead to a correction. Therefore, we think that it is better to stay out of the market at this moment.
Thank you.
Paul Rejczak
Stock Trading Strategist
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