Stocks retrace their recent weakness, new uptrend?

July 10, 2017 09:22 AM

Mixed Expectations
Expectations before the opening of today's trading session are mixed, with futures currently between 0.0% and +0.4% vs. their Friday's closing prices. The European stock market indexes have gained 0.3-0.5% so far. There will be no new important economic data announcements today. The S&P 500 futures contract trades within an intraday consolidation following an overnight move up. The nearest important level of resistance is at around 2,430, marked by some previous local highs. The next resistance level is at 2,440-2,450, marked by all-time high. On the other hand,
the support level is at 2,400-2,410, marked by last week's local low. Which direction is next? Will the market break above short-term consolidation and continue its eight-year-long bull market?


Nasdaq Fluctuates
The technology Nasdaq 100 futures follows a similar path, as it trades within an intraday consolidation after an overnight advance. The Nasdaq remains within a short-term consolidation after recent move down. The nearest important level of resistance is at around 5,680-5,700, marked by recent local high. On the other hand, support level is at 5,650-5,660, and the next level of support remains at 5,550-5,600, as the 15-minute chart shows:

Concluding, the S&P 500 Index retraced its Thursday's weakness on Friday, as investors reacted to better-than-expected economic data releases. Will the broad stock market break above short-term consolidation? There have been no confirmed negative signals so far. However, we still can see negative technical divergences, along with some medium-term overbought conditions.

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