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 were mixed between 0.0% and +0.3% on Friday, as investors reacted to better-than-expected monthly jobs report release. The S&P 500 index continues to fluctuate following its recent rally. The nearest important level of resistance is at 2,130-2,140, marked by May 20th all-time high of 2,132.82, among others. On the other hand, support level remains at around 2,080, and the next level of support is at 2,020-2,050. There have been no confirmed negative signals so far. However, we can see overbought conditions:

Expectations before the opening of today's trading session are slightly negative, with index futures currently down 0.2%. The main European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) trades within an intraday downtrend, following its Friday's rebound. The nearest important level of resistance is at around 2,100, and support level is at 2,075-2,080, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it retraces some of its Friday's move up. The nearest important level of resistance is at 4,700-4,710. On the other hand, support level is at 4,660, marked by Friday's local low, as we can see on the 15-minute chart:

Concluding, the broad stock market extended its short-term consolidation on Friday, as investors reacted to monthly jobs data release. There have been no confirmed short-term negative signals so far. However, we can see overbought conditions. We expect a downward correction or short-term uptrend reversal. 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
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