The major U.S. stock market indexes lost between 0.2% and 0.4% yesterday, as investors continued taking profits following last week’s rally. There are also some growing Fed taper fears amid better-than-expected economic data announcements. The S&P 500 index closed fifteen points below the psychological level of 1,800. The nearest important support is at 1,770-1,775, marked by late October, early November consolidation, followed by local lows. On the other hand, the resistance is at 1,800, and the next resistance is at 1,810-1,815, marked by last Friday’s all-time high of 1,813.55, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently gaining 0.3-0.4%. The European stock market indexes have gained 0.2-0.5% so far. Investors will now wait for the key economic data announcements: Nonfarm Payrolls and the Unemployment Rate for the month of November, PCE Prices-Core indicator and Personal Income/Spending at 8:30 a.m., followed by the Michigan Sentiment at 9:55 a.m. The S&P 500 futures contract (CFD) remains in its Wednesday’s volatile range. The nearest support is at 1,775-1,780, and the resistance is at 1,800, as the 15-minute chart shows:

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

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

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Thank you,
Paul Rejczak