Positive expectations: Will uptrend continue?
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 lost 0.6 to 1.1% on Wednesday, retracing their Tuesday's advance, as investors reacted to economic data releases, among others. The S&P 500 index bounced off resistance level of 2,100. The next important level of resistance is at around 2,130, marked by late May all-time high. On the other hand, support level is 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 positive, with index futures currently up 0.6-0.7%. The main European stock market indexes have gained 0.3-1.3% so far. Investors will now wait for some economic data announcements: Initial Claims at 8:30 a.m., Factory Orders, ISM Services number at 10:00 a.m. The S&P 500 futures contract (CFD) trades within an intraday uptrend, as it retraces yesterday's decline. The nearest important level of resistance is at around 2,100-2,105. On the other hand, support level is at around 2,075, as we can see on the 15-minute chart: