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

Our intraday outlook is now 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 lost 0.1-0.3% on Monday, slightly retracing some of their recent move up, as investors took short-term profits off the table. Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index extended its consolidation as it fluctuated along the level of 2,110. The nearest important level of resistance is at around 2,110-2,120, marked by February 25 all-time high of 2,119.59. On the other hand, support level is at 2,085-2,090, marked by recent local lows, among others, as the daily chart shows:

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1-0.2%. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: Consumer Price Index at 8:30 a.m., FHFA Housing Price Index at 9:00 a.m., New Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it trades close to the level of 2,100. The nearest important level of support remains at around 2,090:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it bounces slightly, following yesterday's decline. The nearest important level of support is at 4,430, and resistance level is at 4,460-4,470, marked by local high, as we can see on the 15-minute chart:

Concluding, the broad stock market continues to fluctuate as it remains relatively close to late February all-time high. We can see some profit taking following recent move up. There have been no confirmed negative signals so far. For now, it looks like some further medium-term consolidation, following last year's October-November rally. 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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