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. We decided to change our long-term outlook to neutral recently, following a move down below medium-term lows:

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 gained between 2.1% and 3.2% on Tuesday, as investors' sentiment improved considerably. The S&P 500 index extended its short-term uptrend following recent consolidation. The nearest important level of resistance is at around 1,980-2,000, marked by previous local lows. Will this uptrend extend even further? The nearest important level of support remains at 1,950, marked by previous level of resistance. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions. Last year's August - September lows continue to act as medium-term support level, as we can see on the daily chart:

Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.1-0.2%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: ADP Employment Change number at 8:15 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 trades within an intraday downtrend, as it retraces some of its yesterday's rally. The nearest important level of resistance is at around 1,980. On the other hand, support level is at 1,965-1,970, marked by Friday's local high. There have been no confirmed negative signals so far. But will the uptrend continue? Will the market break above 2,000 mark?

The technology Nasdaq 100 futures contract follows a similar path, as it retraces some of its yesterday's advance. The nearest important level of support is at 4,300 mark. On the other hand, resistance level is at 4,350, among others. We can see some short-term overbought conditions:

Concluding, the broad stock market accelerated its short-term uptrend yesterday, as investors reacted to some economic data releases. There have been no confirmed short-term  negative signals so far. The index continues to trade along last year's August - September local lows, as they act as medium-term level of support. However, it still looks like a correction within a medium-term downtrend. We still 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.

Thank you.

Paul Rejczak
Stock Trading Strategist
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