Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook remains neutral, and our short-term outlook is neutral:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes gained 1.0-1.3% on Thursday, retracing some of their recent move down, as investors reacted to quarterly corporate earnings reports, economic data announcements. Technically, the S&P 500 index bounced off support level of 1,990-2,000, remaining within three-month long consolidation. The nearest important level of resistance is at around 2,040-2,050, marked by recent local highs, among others, as we can see on the daily chart:
Expectations before the opening of today's trading session are negative, with index futures currently down between 0.4% and 0.8%. The main European stock market indexes have lost 0.4-0.7% so far. Investors will now wait for some economic data releases: U.S. GDP advance number at 8:30 a.m., Chicago PMI at 9:45 a.m., Michigan Sentiment at 9:55 a.m. The S&P 500 futures contract (CFD) is in an intraday downtrend, as it partly retraces yesterday's move up. The nearest important level of resistance is at 2,020, marked by local high. On the other hand, support level remains at 1,980-1,990, among others:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it retraces some of its yesterday's advance. The nearest important resistance level is at around 4,200, and support level is at 4,130-4,150, as the 15-minute chart shows:
Concluding, the broad stock market bounced off yesterday, following recent sell-off. It continues to look like a volatile medium-term consolidation following last year's October-November rally. We still 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
