Briefly: In our opinion, no speculative positions are justified

Our intraday outlook is now 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): bearish
Long-term outlook (next year): bullish

The main U.S. stock market indexes gained 1.6-2.0% on Thursday, accelerating their short-term uptrend, as investors reacted to European Central Bank's QE program announcement, quarterly corporate earnings releases. The S&P 500 index broke above its resistance level of 2,020-2,050. The nearest important level of resistance is at 2,080-2,100. On the other hand, support level is at 2,000-2,020:

Expectations before the opening of today's trading session are very positive, with index futures currently up 0.5-0.8% (and that doesn't include yesterday's after-hours rally). The European stock market indexes have gained 1.2-2.1% so far. The S&P 500 futures contract (CFD) remains within an intraday uptrend, as it currently trades along the level of 2,060. The nearest important level of support is at 2,050-2,055, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) got closer to its July all-time high, following better-than-expected quarterly earnings releases. The nearest important resistance level is at 4,600, and support level is at around 4,560-4,570, marked by local lows, as we can see on the 15-minute chart:

Concluding, the broad stock market accelerated its short-term uptrend on Thursday. However, it continues to trade below February - August consolidation. Our speculative short position (2,024.37, S&P 500 index) has been closed at the stop-loss level of 2,060 (S&P 500 index), as the futures contract extended its gains yesterday after-hours. We 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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