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 main U.S. stock market indexes were virtually flat on Thursday, extending their short-term fluctuations, as investors reacted to quarterly corporate earnings releases, economic data announcements. Our yesterday's neutral intraday outlook has proved accurate. The S&P 500 index remained relatively close to its February 25 all-time high of 2,119.59. The nearest important level of resistance is at around 2,110-2,120, marked by previous local highs. On the other hand, support level is at 2,080-2,090. For now, it looks like some further medium-term consolidation following October-November rally:

Expectations before the opening of today's trading session are negative, with index futures currently down 0.8-1.0%. The European stock market indexes have lost 0.5-1.5% so far. Investors will now wait for some economic data announcements: Consumer Price Index at 8:30 a.m., Michigan Sentiment, Leading Indicators at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend. The nearest important resistance level is at around 2,090-2,100. On the other hand, support level is at 2,080, among others, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) broke below support level of 4,400, which is negative. The nearest important level of support is at around 4,365, marked by previous local low, and resistance level is at 4,400, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short-term consolidation yesterday, as the S&P 500 index fluctuated along the level of 2,100. 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
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