Some Further Fluctuations As Indexes Remain Close To Record Highs - Which Direction Is Next?

Briefly: In our opinion, no speculative positions are justified.

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

Intraday (next 24 hours) outlook: neutral

Short-term (next 1-2 weeks) outlook: neutral

Medium-term (next 1-3 months) outlook: neutral

Long-term outlook (next year): bullish

The main U.S. stock market indexes were mixed between -0.1% and +0.6% on Wednesday, as investors continued to hesitate following recent move up. There is no clear short-term direction. For now, it looks like a flat correction within an uptrend. The S&P 500 index remains close to Monday’s all-time high of 2,024.46. The nearest important level of resistance is at around 2,020-2,025, and the support level is at 2,000, among others, 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 European stock market indexes have lost 0.2-0.4% so far. Investors will now wait for some further economic data announcements: Initial Claims, Productivity at 8:30 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, as it fluctuates along the level of 2,015. The nearest important resistance level is at 2,015-2,020, and level of support remains at 2,000-2,010, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is relatively weaker, as it bounced off the resistance level at around 4,170-4,180 yesterday. The nearest important level of support is at 4,130, marked by local lows. For now, it looks like a correction within a short-term uptrend:

Concluding, the broad stock market fluctuates following recent rally. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions which may lead to a downward correction at some point in time. 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

Stock Trading Alerts

SunshineProfits.com

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