Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday
(next 24 hours) outlook: neutral
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 0.3-0.4% on Thursday, extending their short-term consolidation, as investors continued to hesitate following recent advance. However, the S&P 500 index has managed to reach new all-time high at the level of 2,031.61. The nearest important support level is at around 2,020, marked by previous level of resistance. The next support level is at 2,000, among others. There have been no confirmed negative signals so far, however, we can see some short-term overbought conditions:
Expectations before the opening of today’s trading session are slightly positive, with index futures currently up 0.1-0.2%. The European stock market indexes have been mixed so far. Investors will now wait for some economic important data announcements: Nonfarm Payrolls, Unemployment Rate at 8:30 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it moves above yesterday’s trading range. The nearest important support level is at around 2,020, among others, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) trades close to its long-term highs, testing the resistance level of 4,180. On the other hand, the level of support remains at around 4,120-4,130, marked by recent local lows, as the 15-minute chart shows:
Concluding, the broad stock market extends its recent rally ahead of the monthly jobs data report release. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions which may lead to a downward correction at some point in time. We prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.
Thank you.
Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
