Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook is neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:

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): neutral

The main U.S. stock market indexes lost 0.1-0.2% on Monday, following their Friday's advance, as investors took some short-term profits off the table. The S&P 500 index extends its fluctuations along the level of 2,050, after a rebound off support level at around 2,000-2,020. The nearest important level of support is at 2,030-2,040. On the other hand, the nearest important level of resistance is at 2,050-2,060, marked by recent local highs. The next resistance level is at 2,070-2,085, marked by last week's local highs. Last year's highs along the level of 2,100 continue to act as medium-term resistance level. Will the market break above these medium-term highs and continue its seven-year long bull market?

Expectations before the opening of today's trading session are positive, with index futures currently up 0.3-0.4%. The European stock market indexes have gained 0.7-1.4% so far. Investors will now wait for the New Home Sales data release at 10:00 a.m. The S&P 500 futures contract trades within an intraday uptrend, following a rebound off support level at 2,040. The next support level is at 2,020-2,030, marked by recent local lows. The nearest important resistance level is at 2,050-2,050. For now, it looks like a relatively flat correction within a short-term uptrend off last week's local lows. There have been no confirmed negative signals so far:

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday uptrend following a quick move to support level at 4,340-4,350. The nearest important level of resistance is at around 4,370-4,380, marked by some short-term local highs, as we can see on the 15-minute chart:

Concluding, the broad stock market fluctuated yesterday, as the S&P 500 index traded within a short-term consolidation following Friday's move up. The index is still relatively close to last year's medium-term highs along the level of 2,100 and continues to trade slightly above above its late March - early April lows. It still looks like a correction within a medium-term uptrend, so 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.

Due to personal emergency, there will be no Stock Trading Alerts On Wednesday, Thursday, and Friday. I'd like to apologize for inconvenience.

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts