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 main U.S. stock market indexes were mixed between -0.3% and 0.0% on Wednesday, following their recent decline. The S&P 500 index continues to trade below the level of 2,000. The nearest important level of resistance is at around 1,950, marked by previous support level. On the other hand, support level is at 1,900-1,920, marked by local lows. There have been no confirmed positive signals so far. It still looks like a correction following late August sell-off:
Expectations before the opening of today's trading session are negative, with index futures currently down 0.8-0.9%. The European stock market indexes have lost 0.6-2.2% so far. Investors will now wait for some economic data announcements: Initial Claims, Durable Orders at 8:30 a.m., New Home Sales number at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday downtrend, as it retraces its yesterday's rebound. The nearest important level of support is at around 1,900-1,910, and resistance level is at 1,930-1,950, among others, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades closer to the level of 4,200. The nearest important level of resistance is at around 4,280-4,300, and support level is at 4,200-4,220, as we can see on the 15-minute chart:
Concluding, the broad stock market fluctuated on Wednesday, as investors hesitated following recent move down. There have been no confirmed positive signals so far. It looks like an upward correction within a medium-term downtrend. We 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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