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

Our intraday outlook remains 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 main U.S stock market indexes gained between 0.8% and 1.5% on Tuesday, as they got closer to recent local highs. The S&P 500 index remains within its three-month long consolidation. The nearest important resistance level is at around 2,070, and the next level of resistance is at 2,080-2,100, marked by December 29th all-time high of 2,093.55, among others. There is no clear short-term direction, as we can see on the daily chart:

Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.1-0.2%. European stock market indexes have lost 0.3-0.6% so far. The S&P 500 futures contract (CFD) is in a relatively narrow intraday trading range, following yesterday's move up. The nearest important resistance level is at around 2,060-2,065, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) remains in a similar intraday consolidation, as it moves along the level of 2,275. For now, it looks like a flat correction within an uptrend:

Concluding, the broad stock market extended its short-term fluctuations. For now, it looks like a flat correction within an uptrend, however, the S&P 500 index continues to trade within three-month long consolidation. 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
Stock Trading Alerts