Briefly: In our opinion, speculative long positions are favored (with stop-loss at 1,950, and profit target at 2,020, S&P 500 index)

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

Intraday outlook (next 24 hours): bullish
Short-term outlook (next 1-2 weeks): bullish
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): bullish

The U.S. stock market indexes were mixed between -0.6% and +0.1% on Tuesday, as investors hesitated following recent move up. The S&P 500 index remains below the level of 2,000. The nearest important level of resistance is at 2,000-2,020. On the other hand, support level remains at around 1,950, and the next level of support is at 1,870-1,900. There have been no confirmed positive medium-term signals so far. It still looks like a consolidation following late August sell-off:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.4-0.6%. The main European stock market indexes have gained 0.3-1.0% so far. Investors will now wait for the Crude Inventories number release at 10:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, following yesterday's retreat. The nearest important level of resistance is at 1,980-2,000, and support level is at 1,960, marked by local lows, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it currently trades above the level of 4,300. The nearest important level of resistance is at around 4,330-4,350, and support level is at 4,300, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market fluctuated on Monday, as investors took some short-term profits off the table. There have been no confirmed positive signals so far. It still looks like a consolidation or a flat correction following late August sell-off. We continue to maintain our already profitable speculative long position (1,881.90, S&P 500 index), but we move our stop-loss level to 1,950 (S&P 500 index), effectively locking in gains while allowing profits to increase. Our profit target level remains at 2,020. You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. 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
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