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 main U.S. stock market indexes were virtually flat on Wednesday, as investors reacted to some economic data announcements, ahead of long holiday weekend. The S&P 500 index extended its short-term consolidation following recent move up. 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 is at 2,020-2,050, among others. For now, it looks like a consolidation following October rally:
Expectations before the opening of today's shortened long holiday trading session are slightly negative, with index futures currently down 0.1-0.2%. The European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) trades within an intraday consolidation, as it extends its short-term fluctuations. The nearest important level of resistance is at 2,100. On the other hand, support level remains at 2,070-2,080, as the 15-minute chart shows:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it fluctuates along the level of 4,700. The nearest important level of resistance is at 4,700, and support level remains at around 4,650, as we can see on the 15-minute chart:
Concluding, the broad stock market fluctuated within a relatively narrow trading range, as it extended its consolidation on Wednesday. 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
Stock Trading Alerts
