The U.S. stock market indexes were mixed yesterday, as investors hesitated after last week’s rally. The S&P 500 index extended its long-term uptrend slightly, reaching a new all-time high of 1,747.79. The nearest resistance is at the psychological 1,750. On the other hand, the support remains at 1,733.45-1,735.74, marked by Friday’s daily gap up. The next support is at 1,729.86, marked by the September 19 high, as we can see on the daily chart:
Expectations before the opening of today’s session are virtually flat, as the main European stock market indexes have been mixed so far. Investors will now wait for some important economic data announcements: Nonfarm Payrolls and Unemployment Rate for the month of September at 8:30 a.m. (previously delayed because of a government shutdown), and Construction Spending number at 10:00 a.m. The S&P 500 futures contract (CFD) trades in a very narrow range, which looks like a flat correction of the recent uptrend. The resistance is at around 1,740, and the nearest important support is at 1,730-1,735, as the 15-minute chart shows:
Our intraday outlook is bearish, and our short-term outlook remains neutral for now, as there may be some profit-taking pressure following recent rally:
Intraday
outlook: bearish
Short-term outlook: neutral
Medium-term outlook: neutral
Long-term outlook: bullish
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Thank you,
Paul Rejczak