Our intraday outlook is now bearish, and our short-term outlook is now 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 gained between 1.1% and 1.8% on Friday, extending their recent rebound, as investors reacted to mixed economic data. The S&P 500 index has retraced a little over 50% of its move down from the January 15 all-time high of 1,850.84 (50% retracement at 1,794.4, and 61.8% retracement at 1,807.7), reaching daily high at 1,798.03. For now, it continues to look like an upward correction within short-term downtrend, however a change of trend cannot be excluded. The nearest resistance is at around 1,800-1,810. On the other hand, the support is at 1,770-1,775, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly negative, with index future currently down 0.1-0.4%. The European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) is in a relatively narrow intraday trading range, following last week’s rebound. The nearest important resistance is at 1,790-1800, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) broke above its recent trading range, as it remained relatively stronger than the broad market. The resistance is at 3,580-3,590, and the nearest support is at around 3520:

Thank you.

Paul Rejczak
Stock Trading Strategist
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