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 gained 0.6-0.8% on Wednesday, extending their short-term fluctuations following last week's advance. Our yesterday's bullish intraday outlook has proved accurate. The S&P 500 index continues to trade slightly below the level of 2,000. The nearest important level of resistance is at 2,000-2,020, marked by September local high, among others. On the other hand, support level is at 1,950, and the next level of support is at 1,870-1,900, marked by previous lows:

Expectations before the opening of today's trading session are negative, with index futures currently down 0.5-0.6%. The main European stock market indexes have lost 0.1-0.3%. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., FOMC Minutes release at 2:00 p.m. The S&P 500 futures contract (CFD) is within an intraday consolidation, as it extends its short-term fluctuations. The nearest important level of support is at around 1,960-1,970, and resistance level is at 1,990-2,000, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,300. The nearest important level of resistance is at 4,320-4,330, and support level is at around 4,270, as we can see on the 15-minute chart:

Concluding, the broad stock market continued to fluctuate on Wednesday, as the S&P 500 index remained slightly below the level of 2,000. 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). The stop-loss level is at 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 imit potential losses while letting the gains grow.

Thank you.

Paul Rejczak
Stock Trading Strategist
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