Our intraday outlook remains bearish, and our short-term outlook is neutral:

Intraday (next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The main U.S. stock market indexes lost between 0.6% and 0.7% on Wednesday, as investors took profits following recent rally. The S&P 500 index moved away from its January 15 all-time high of 1,850.84, however, there have been no confirmed uptrend reversal signals so far. The resistance remains at around 1,840-1,850, and the nearest important support is at 1,800-1,810, marked by the November-December consolidation, among others. For now, it looks like a correction within an uptrend, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, with index future down 0.1%. The European stock market indexes have lost 0.3-1.0% so far. Investors will now wait for some economic data announcements: Initial Claims and the Consumer Price Index at 8:30 a.m., Philadelphia Fed index and the Leading Indicators at 10:00 a.m. The S&P 500 futures contract (CFD) has retraced some of its recent move up. The nearest important support is at around 1,815-1,820, and the resistance remains at 1,840, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) bounced off the resistance at around 3,690-3,700. For now, it looks like a correction within an uptrend, however, some further decline cannot be excluded. The nearest important support is at 3,640, and the next support is at the psychological 3,600:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts