Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,140 and profit target at 1,990, 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): bearish
Long-term outlook (next year): bullish

The U.S. stock market indexes were mixed between 0.0% and -0.3% on Thursday, as investors continued to hesitate following recent rally. The S&P 500 index remains relatively close to its late May all-time high of 2,132.82. The nearest important level of resistance is at around 2,130-2,140. On the other hand, support level is at 2,080-2,100. There have been no confirmed negative signals so far. However, we can see overbought conditions which may lead to a correction or uptrend reversal:

Expectations before the opening of today's trading session are virtually flat. The main European stock market indexes have been mixed so far. Investors will now wait for the important economic data announcement: Nonfarm Payrolls, Unemployment Rate at 8:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, as it moves along the level of 2,090. The nearest important level of resistance is at 2,100, and support level remains at around 2,080, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it currently trades along the level of 4,700. The nearest important level of support is at 4,670-4,680, and resistance level is at 4,720-4,730, marked by record highs, as we can see on the 15-minute chart:

Concluding, the broad stock market trades within a consolidation following its recent rally, as investors await monthly jobs report release today. There have been no confirmed short-term negative signals so far. However, we can see overbought conditions. We expect a downward correction or short-term uptrend reversal. Therefore, we continue to maintain our speculative short position (2,088.35, S&P 500 index). Stop-loss is at 2,140 and potential profit target is at 1,990 (S&P 500 index). 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
Stock Trading Alerts