Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,030 and a profit target at 1,900, S&P 500 index)
Our intraday outlook is bearish, and our short-term outlook is bearish:
Intraday
(next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: bearish
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The U.S. stock market indexes were mixed between -0.3% and +0.1% on Monday, extending their recent fluctuations, as investors continued to hesitate following month-long rally. The S&P 500 index remains close to its all-time high of 2,011.17. The resistance level is at around 2,000-2,010, and the nearest important level of support is at 1,985-1,990, marked by local lows. There have been no confirmed sell signals. However, we still can see negative divergences, accompanied by overbought conditions:
Expectations before the opening of today’s session are virtually flat. The main European stock market indexes have lost 0.1-0.2% so far. Investors seem to take a breather following last week’s jobs data release. The S&P 500 futures contract (CFD) continues to fluctuate along the level of 2,000. The level of resistance is at around 2,005-2,010, marked by recent local highs. On the other hand, the support level is at 1,990-1,995, among others:
The technology Nasdaq 100 futures contract (CFD) extends its short-term consolidation, as it trades slightly below the level of 4,100. The resistance level remains at 4,100-4,115, and the nearest important level of support remains at around 4,075-4,080, marked by recent local low, as we can see on the 15-minute chart:
Concluding, the broad stock market remains relatively close to all-time high as the S&P 500 index continues to fluctuate along the level of 2,000. We remain bearish, expecting a downward correction or uptrend reversal. Therefore, we continue to maintain our speculative short position. The stop-loss is at the level of 2,030 and potential profit target is at 1,900 (S&P 500 index). 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
