Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,140, and profit target at 1,980, S&P 500 index)

Our intraday outlook is bearish, and our short-term outlook is bearish:

Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes were mixed between -0.2% and +0.4% on Tuesday, as investors remained uncertain ahead of today's FOMC Rate Decision release, among others. The S&P 500 index continues to fluctuate, as it is relatively close to Monday's all-time high of 2,125.92. The nearest important resistance level is at around 2,120-2,125, and support level is at 2,100. There have been no confirmed negative signals so far. However, we can see negative technical divergences:

Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have gained 0.3% so far. Investors will now wait for some economic data announcements: GDP - Advance number at 8:30 a.m., Pending Home Sales at 10:00 a.m., FOMC Rate Decision release at 2:00 p.m. The S&P 500 futures contract (CFD) is within an intraday consolidation, as it fluctuates following yesterday's move up. The nearest important level of support is at 2,090-2,100, and resistance level is at 2,120, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is relatively weaker today, as it extends its short-term fluctuations along the level of 4,500. The nearest important support level is at 4,490-4,500, and resistance level is at 4,530, as we can see on the 15-minute chart:

Concluding, the S&P 500 index continued to fluctuate on Tuesday, as investors took short-term profits off the table. There have been no confirmed negative signals so far. However, we maintain our speculative short position (2,098.27, S&P 500 index), as we expect a downward correction or an uptrend reversal. Stop-loss is at 2,140, and potential profit target is at 1,980. 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 limit potential losses while letting the gains grow.

Thank you.

Paul Rejczak
Stock Trading Strategist
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