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

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

The U.S. stock market indexes lost between 0.2% and 0.3% on Friday, as investors took profits following recent rally. The S&P 500 index remains close to its January 15 all-time high of 1,850.84. Will it break above the resistance? For now, it looks like some sort of a topping consolidation pattern, however, a bullish scenario cannot be excluded. The nearest important support is at around 1,800-1,810, marked by the November-December consolidation and some other local extremes. The index continues to trade in a medium-term consolidation, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, with index futures currently mixed between -0.1% and +0.1%. The main European stock market indexes have lost 0.1-0.5% so far. The S&P 500 futures contract (CFD) continues to fluctuate slightly below its recent highs. The resistance is at around 1,840-1,845, and the nearest support is at 1,830:

The technology Nasdaq 100 futures contract (CFD) remains in a similar trading range, below its recent highs. The resistance is at around 3,685-3,700, and the support is at around 3,640-3,650. For now, it looks like a flat correction within an uptrend, however, a double-top pattern formation cannot be excluded, as the 15-minute chart shows:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts