Briefly: In our opinion, no speculative positions are justified

Our intraday outlook is neutral, and our short-term outlook is neutral:

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): bullish

The U.S. stock market indexes gained 0.5-1.0% on Thursday, extending their recent fluctuations, as investors reacted to economic data releases, among others. The S&P 500 index continues to trade below the level of 2,000. The nearest important level of resistance is at 1,980-2,000. On the other hand, it remains above support level of 1,900-1,920. There have been no confirmed positive signals so far. It still looks like a relatively flat correction following late August sell-off:

Expectations before the opening of today's trading session are negative, with index futures currently down 0.4-0.6%. The main European stock market indexes have lost 0.4-0.9% so far. Investors will now wait for some economic data announcements: Producer Price Index at 8:30 a.m., Michigan Sentiment number at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday consolidation, as it extends short-term fluctuations. The nearest important level of resistance is at 1,960-1,970, and support level is at 1,920-1,930, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it trades along the level of 4,300. The nearest important level of resistance is at 4,320-4,330, and support level remains at 4,230-4,250, as we can see on the 15-minute chart:

Concluding, the broad stock market extends its short-term consolidation on Thursday. There have been no confirmed positive signals so far. 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.

Thank you.

Paul Rejczak
Stock Trading Strategist
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