Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains neutral, following S&P 500 index breakout above last year's all-time high:

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): neutral

The U.S. stock market indexes gained 0.2-0.3% on Thursday, extending their short-term uptrend, as investors reacted to economic data releases, among others. The S&P 500 index has reached yet another new all-time high at the level of 2,251.69. The nearest important support level is at around 2,215-2,220, marked by previous resistance level. The next support level remains at 2,200. The market broke above its medium-term upward trend line, as we can see on the daily chart:

Expectations before the opening of today's trading session are virtually flat. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Michigan Sentiment, Wholesale Inventories at 10:00 a.m. The S&P 500 futures contract trades within an intraday consolidation, as investors hesitate following recent rally. The nearest important level of resistance is at around 2,250 mark. On the other hand, support level is at around 2,230-2,235, marked by previous consolidation:

The technology Nasdaq 100 futures contract follows a similar path, as it currently trades within an intraday consolidation following recent rally. However, it remains relatively weaker than the broad stock market, as it trades below last months' local highs along 4,900 mark. The nearest important level of resistance is at around 4,880-4,900. On the other hand, support level is at 4,840-4,850, marked by previous resistance level, as the 15-minute chart shows:

Concluding, the broad stock market reached new all-time high yesterday, as it extended its Wednesday's rally. We still can see technical overbought conditions. However, there have been no confirmed negative signals so far. Our speculative short position has been closed on Wednesday, at the stop-loss level of 2,240 (S&P 500 index). We lost 63 index points on that trade, betting against short-term uptrend off early November local low. 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. Currently, 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
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