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 virtually flat on Tuesday, after a relatively volatile trading session, as investors continued to hesitate following recent move up. The S&P 500 index extended its short-term consolidation along the level of 2,080. The nearest important level of resistance is at around 2,100, and the next resistance level is at 2,130, marked by late May all-time high. On the other hand, support level remains at 2,020-2,050, among others:

Expectations before the opening of today's trading session are positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have gained 0.9-1.5% so far. Investors will now wait for series of economic data announcements: Initial Claims, Personal Income, Personal Spending, Durable Orders at 8:30 a.m., FHFA Housing Price Index at 9:00 a.m., Michigan Sentiment, New Home Sales at 10:00 a.m., Crude Inventories at 10:30 a.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it extends its short-term consolidation. The nearest important level of resistance is at around 2,100, and support level remains at 2,070, among others, 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 4,680. The nearest important level of resistance is at 4,700, and support level is at 4,020-4,050, as we can see on the 15-minute chart:

Concluding, the broad stock market continued to fluctuate on Tuesday, as investors took short-term profits off the table. Despite recent rally, there have been no confirmed positive signals so far. 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
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