Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday
(next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes were mixed between -0.3% and +0.1% on Tuesday, retracing some of their recent advance as investors hesitated ahead of some further economic data announcements. Our yesterday’s neutral intraday outlook has proved accurate. The S&P 500 index retraced its recent move up, however, it managed to stay above the support level of 2,000. The level of resistance is at around 2,020-2,025, marked by Monday’s all-time high of 2,024.46. There have been no confirmed negative signals so far, however, we can see some short-term overbought conditions:
Expectations before the opening of today’s trading session are positive, with index future currently up 0.3-0.5%. The main European stock market indexes have gained 0.9-1.2% so far. Investors will now wait for some economic data announcements: ADP Employment Change report at 8:15 a.m., ISM Services at 10:00 a.m. The S&P 500 futures contract (CFD) continues to fluctuate following recent move up. The resistance level remains at around 2,015-2,020, marked by local highs. On the other hand, the nearest important level of support is at 1,995-2,000, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) remains close to its long-term high, as it fluctuates along the level of 4,150. The level of resistance is at around 4,160-4,170. There have been no confirmed negative signals so far, as the 15-minute chart shows:
Concluding, the broad stock market fluctuates following recent rally. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions which may lead to a downward correction at some point in time. 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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