The main U.S. stock market indexes gained between 0.2% and 1.6% on Friday, as investors reacted to better-than-expected quarterly earnings release from Google inc., amongst others. The S&P 500 index extended its long-term uptrend, gaining 0.7% for the day, and making a new all-time high at 1,745.31. The price broke above the upper limit of a medium-term rising wedge pattern, which is a positive signal. However, the negative scenario still cannot be excluded, as the index may move back into the pattern’s boundaries. The nearest important level of support is 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 major European stock market indexes have been mixed so far. Investors will now wait for the Existing Home Sales data announcement at 10:00 a.m. Also, investors await tomorrow’s U.S. unemployment report (previously delayed due to government shutdown). The S&P 500 futures contract (CFD) trades in a relatively narrow range today, which looks like a short-term topping consolidation. The resistance remains at around 1,740, and the nearest support is at 1,730-1,735, as the 15-minute chart shows:

Our intraday outlook is now 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