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

Our intraday outlook is now 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 were virtually flat on Tuesday, following Monday's move up. The S&P 500 index extended its short-term uncertainty, as it continued to fluctuate below resistance level of 2,080-2,090. On the other hand, the nearest important level of support remains at around 2,040-2,050, marked by previous local lows. There is no clear medium-term direction, as the broad stock market is basically unchanged since late November, following October-November rally:

Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have been mixed so far. Investors will now wait for the FOMC Minutes release at 2:00 p.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it retraces yesterday's move down. The nearest important level of support remains at around 2,060-2,065. On the other hand, resistance level is at 2,080, marked by recent local highs, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades within an intraday uptrend. The nearest important level of support is at around 4,320, marked by some local extremes. On the other hand, resistance level is at 4,350-4,360, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market extends its short-term fluctuations, as the S&P 500 index trades above support level of 2,040-2,050. For now, it looks like further medium-term consolidation, following last year's October-November rally. 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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