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 U.S. stock market indexes gained 1.0-1.3% on Monday, retracing Friday's move down, as investors reacted positively to oil prices rebound, economic data announcements, among others. The S&P 500 index remains within three-month long consolidation, following a rebound off support level at around 1,980-2,000. On the other hand, level of resistance is at 2,020-2,025, marked by short-term local highs. For now, it looks like some further medium-term uncertainty, as the index continues to move along the level of 2,000:

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1%. The main European stock market indexes have gained between 1.0% and 1.2% so far. Investors will now wait for some the Factory Orders number release at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it is slightly above the level of 2,020. On the other hand, support level remains at around 2,000-2,010, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades close to resistance level of 4,200. The nearest important level of support is at 4,150-4,170, among others, as the 15-minute chart shows:

Concluding, the broad stock market rebounded following Friday's move down. It continues to look like a 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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