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 0.7-1.3% on Monday, as investors took short-term profits following last week's rebound. The S&P 500 index remains below the level of 2,000. The nearest important level of resistance is at around 1,980-2,000. On the other hand, support level is at 1,950, marked by recent local highs. There have been no confirmed positive signals so far. For now, it looks like an upward correction within a short-term downtrend:
Expectations before the opening of today's trading session are negative, with index futures currently down 1.8-2.0%. The main European stock market indexes have lost 2.3-2.7% so far. Investors will now wait for some economic data announcements: ISM Index, Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend, as it breaks down below the level of 1,950. The nearest important level of resistance is at 1,940-1,950, and support level is at 1,900-1,920, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it breaks below the level of 4,200. The nearest important level of resistance is at 4,200, and support level remains at 4,150, among others, as we can see on the 15-minute chart:
Concluding, the broad stock market has retraced some of its last week's rebound yesterday. Investors expect this short-term downtrend to continue. 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.
