Briefly: In our opinion speculative long positions are still favored (with stop-loss at 1,850, S&P 500 index).

Our intraday outlook is bullish, and our short-term outlook remains neutral:

Intraday (next 24 hours) outlook: bullish
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 gained 0.1-0.5% yesterday (and our long positions gained once again), following volatile trading session, as investors digested last week’s economic data releases, corporate earnings announcements, ongoing Russia-Ukraine conflict. The S&P 500 index remains close to its early April all-time high of 1,897.28, testing the resistance at 1,880-1,900. On the other hand, the nearest important level of support is at 1,850, marked by the recent local low. There is no clear short-term or medium-term direction, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently up 0.2-0.3%. The main European stock market indexes have lost 0.1-0.3% so far. Investors will now wait for the U.S. Trade Balance number announcement at 8:30 a.m. The S&P 500 futures contract (CFD) extends its recent fluctuations, as it trades just below the resistance level of 1,880-1,885. There have been no confirmed negative signals so far. The nearest important support is at 1,860-1,865, marked by yesterday’s intraday low, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) continues to fluctuate close to its psychological resistance of 3,600. The support level remains at around 3,550. For now, it looks like some further consolidation, following late April rebound:

Concluding, we remain cautiously optimistic, as the broad stock market may continue its long-term uptrend. There have been no confirmed negative signals so far. However, only speculative long positions are favored at the moment.

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts