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

Our intraday outlook is 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 gained 0.3-0.6% on Thursday, extending their short-term uptrend, as investors reacted to quarterly corporate earnings releases, among others. The S&P 500 index got closer to resistance level of 2090, marked by some previous local lows, and the next important level of resistance is at 2,100-2,120, marked by February 25 all-time high of 2,119.59. On the other hand, support level is at 2,070-2,075, marked by recent consolidation. There is no clear medium-term direction, as stocks continue to fluctuate following their October-November rally:

Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have gained 0.2-1.0% so far. The S&P 500 futures contract (CFD) is within an intraday consolidation following yesterday's move up. The nearest important level of resistance is at around 2,085, and support level remains at 2,060-2,070, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it fluctuates along the level of 4,400. The nearest important level of support is at around 4,375, marked by recent consolidation, as the 15-minute chart shows:

Concluding, the broad stock market extended its short-term consolidation, as investors reacted to quarterly earnings releases. 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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