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

Our intraday outlook is 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 were mixed between -0.3% and +0.3% on Tuesday, as investors awaited quarterly corporate earnings releases and some further economic data announcements. Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index continues to fluctuate along the level of 2,100. The nearest important level of resistance is at 2,100-2,120, marked by February 25 all-time high of 2,119.59, among others. There is still no clear medium-term direction, as the daily chart shows:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.2-0.3%. The European stock market indexes have gained 0.4-0.7% so far. Investors will now wait for some economic data announcements: the NAHB Housing Market Index at 10:00 a.m., Fed's Beige Book release at 2:00 p.m. The S&P 500 futures contract (CFD) is in an intraday uptrend, as it trades close to recent local highs. The nearest important level of resistance is at around 2,100. On the other hand, support level remains at 2,075:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it continues to fluctuate within a short-term consolidation. The nearest important level of support remains at around 4,370, and resistance level is at 4,420-4,430, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short-term consolidation yesterday, as investors reacted to quarterly corporate earnings releases, economic data announcements. For now, it looks like further 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