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 gained 1.0-1.1% on Tuesday, extending their short-term uptrend, as investors reacted to economic data releases, among others. The S&P 500 index has managed to close slightly above the level of 2,100. the nearest important resistance level is at around 2,130, marked by late May all-time high. On the other hand, support level remains at 2,070, marked by previous local low. For now, it looks like a consolidation following October rally:

Expectations before the opening of today's trading session are virtually flat, with index futures currently up 0.1%. The main European stock market indexes have gained 0.4-0.5% so far. Investors will now wait for some economic data announcements: ADP Employment Change report at 8:15 a.m., Productivity at 8:30 a.m., Crude Inventories at 10:30 a.m., Fed's Beige Book release at 2:00 p.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, following yesterday's advance. The nearest important level of resistance is at around 2,100-2,110, and support level is at 2,090, among others, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) fluctuates following recent move up, as it remains close to record highs. The nearest important level of resistance is at around 4,730. On the other hand, support level is at 4,700, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short-term uptrend yesterday. Despite recent rally, there have been no confirmed positive signals so far. The S&P 500 index continues to trade below its last month's high. 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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