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): neutral
Long-term outlook (next year): bullish

The main U.S. stock market indexes gained between 0.7% and 0.8% on Monday, as investors reacted positively to Friday's worse-than-expected monthly jobs report release. The S&P 500 index retraced last week's move down, as it got closer to resistance level of 2,080-2,090, marked by previous local lows. On the other hand, level of support remains at around 2,040-2,050, as we can see on the daily chart:

Expectations before the opening of today's trading session are virtually flat. The European stock market indexes have gained 1.2-1.4% so far. Investors will now wait for the JOLTS - Jobs Openings data announcement at 10:00 a.m. The S&P 500 futures contract (CFD) trades within a short-term consolidation, following yesterday's advance. The nearest important level of resistance is at around 2,080, and support level is at 2,060-2,070, among others:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,350. The nearest important level of resistance is at 4,350-4,360. On the other hand, support level is at 4,300-4,320, as the 15-minute chart shows:

Concluding, the broad stock market retraced its recent move down yesterday, after Friday's worse-than-expected jobs data release. 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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