Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,140, and profit target at 1,980, S&P 500 index)

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

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

The U.S. stock market indexes lost between 0.4% and 0.7% on Thursday, as investors took short-term profits off the table. The S&P 500 index remains relatively close to its late May all-time high of 2,134.72. The nearest important level of resistance is at around 2,130-2,135, and support level is at 2,080-2,100, among others. There have been no confirmed negative signals so far, however, we still can see negative technical divergences:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.1-0.3%. The main European stock market indexes have been mixed so far. Investors will now wait for the New Home Sales data release at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, following yesterday's decline. The nearest important level of resistance is at around 2,110-2,115. On the other hand, support level is at 2,090-2,100, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) trades within an intraday uptrend, as it is relatively stronger than the broad stock market, following yesterday's Amazon's quarterly earnings release. The nearest important resistance level is at 4,650, and support level remains at 4,580-4,600, as we can see on the 15-minute chart:

Concluding, the broad stock market retraced some more of its recent rally yesterday, as investors reacted to quarterly earnings releases, economic data announcements There have been no confirmed negative signals so far. However, we continue to maintain our speculative short position (2,098.27, S&P 500 index), as we expect a medium-term downward correction or an uptrend reversal. Stop-loss is at 2,140, and potential profit target is at 1,980. You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. It is always important to set some exit price level in case some events cause the price to move in the unlikely direction. Having safety measures in place helps limit potential losses while letting the gains grow.

Thank you.

Paul Rejczak
Stock Trading Strategist
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