Briefly: In our opinion, speculative long positions are favored (with stop-loss at 1,900, and profit target at 2,020, S&P 500 index)

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

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

The main U.S. stock market indexes gained between 1.5% and 1.8% on Monday, extending their last week's advance, as investors reacted to economic data releases, among others. Our yesterday's bullish intraday outlook has proved accurate. The S&P 500 index got closer to the level of 2,000, as it extended its month-long consolidation following late August sell-off. The nearest important level of resistance is at 2,000-2,020, and support level is at around 1,950, marked by Monday's daily gap up:

Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.2%. The European stock market indexes have been mixed so far. Investors will now wait for the Trade Balance number release at 8:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, following recent advance. The nearest important level of resistance is at 1,980-2,000, and support level is at 1,950-1,960, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is within a similar intraday consolidation, as it trades along the level of 4,300. The nearest important level of resistance is at 4,320-4,340, and support level is at 4,250-4,280, among others, as we can see on the 15-minute chart:

Concluding, the broad stock market continued its short-term uptrend on Monday, as the S&P 500 index got closer to the level of 2,000. There have been no confirmed positive signals so far. It still looks like a consolidation or a flat correction following late August sell-off. However, we continue to maintain our already profitable speculative long position (1,881.90, S&P 500 index). Stop-loss level is at 1,900 (S&P 500 index) and profit target level remains at 2,020. 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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