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): bearish
Long-term outlook (next year): bullish
The U.S. stock market indexes lost between 0.6% and 1.4% on Tuesday, following very volatile trading session, as investors continued their selling of stocks. The S&P 500 index is the lowest since last November, as it trades below the level of 1,900. The nearest important level of resistance is at around 1,900. On the other hand, potential support level is at 1,820-1,850, marked by previous local lows:
Expectations before the opening of today's trading session are positive, with index futures currently up 1.2-1.3%. The main European stock market indexes have lost 1.4-1.6% so far. Investors will now wait for some economic data announcements: Durable Orders number at 8:30 a.m., Crude Inventories at 10:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, following yesterday's fluctuations. The nearest important level of resistance is at around 1,900-1,910, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) trades within a similar intraday consolidation, following yesterday's volatile trading session. The nearest important level of resistance is at 4,100, and support level remains at 3,950-4,000, as we can see on the 15-minute chart:
Concluding, the broad stock market remains within a historically volatile short-term consolidation, as investors hesitate following recent sell-off. Our late April's short position's (2,098.27, S&P 500 index) profit target has been reached at the level of 1,980. Overall, we gained almost 120 index points on that pre-planned trade. We prefer to be out of the market at this moment, 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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