The main U.S. stock market indexes lost 0.3% yesterday, as investors continued to take profits following year-end rally. The S&P 500 extended its downward correction, closing slightly below the December 26 daily gap up support of 1,829.75-1,834.96. On the other hand, the nearest important resistance remains at 1,840-1,850, marked by the December 31 all-time high of 1,849.44. For now, it looks like a correction within the uptrend, as S&P 500 remains above November-December consolidation upper limit at around 1,800-1,810:

Expectations before the opening of today’s session are positive, with index futures currently up between 0.4% and 0.5%. The European stock market indexes have gained 0.3-0.6%. Investors will now wait for the Trade Balance announcement at 8:30 a.m. The S&P 500 futures contract (CFD) extends its short-term consolidation along the level of 1,820-1,830. The market remains near its late December daily gap up, which is a positive signal. The resistance is at around 1,830-1,835, as we can see on the 15-minute chart:

The Nasdaq 100 futures contract (CFD) is in a relatively narrow intraday trading range, with the support at around 3,500-3,510. The market has retraced its late December rally by around half. Will this downtrend continue? At least for now, it looks like a downward correction:

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

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

Thank you,
Paul Rejczak