Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,085 and profit target at 1,950, S&P 500 index).
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday
(next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes gained 0.2-0.5% on Thursday, extending their recent fluctuations, as investors reacted to better-than-expected economic data announcements. The S&P 500 index remains close to Tuesday’s all-time high of 2,056.08. The nearest important resistance level is at around 2,050-2,060. On the other hand, support level is at around 2,040-2,045, marked by previous resistance level, and the next level of support is at 2,020-2,025. There have been no confirmed negative signals so far, however, we can see overbought conditions accompanied by negative divergences:
Expectations before the opening of today’s trading session are positive, with index futures currently up 0.6%. The main European stock market indexes have gained 0.7-1.7% so far. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it reaches new all-time highs this morning. The nearest important level of support is at around 2,050-2,045, marked by previous resistance level. There have been no confirmed negative signals so far, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it reaches new long-term highs. Potential resistance level is at around 4,280-4,300. On the other hand, the nearest important level of support is at 4,240-4,250, among others, as the 15-minute chart shows:
Concluding, the broad stock market continues its long-term uptrend. There have been no confirmed negative signals so far. However, we expect a downward correction or an uptrend reversal. Therefore, we continue to maintain our speculative short position. Stop-loss is at 2,085 and potential profit target is at 1,950 (S&P 500 index). 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
Stock Trading Alerts
