Intraday trade: Our Wednesday intraday trading outlook was bearish. It proved partly wrong because the S&P 500 index gained 0.1%, following the higher opening of the trading session. The index traded within a relatively narrow intraday trading range once again. The market may retrace some of its recent rally. Therefore, the intraday short position is favored. Stop-loss is at the level of 2,570 and potential profit target is at 2,530 (S&P 500 index).
Our intraday outlook is bearish today. Our short-term outlook is neutral, and our medium-term outlook is neutral:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): neutral
The main U.S. stock market indexes were mixed between 0.0% and +0.7% on Wednesday, as they continued to fluctuate along new record highs following economic data, quarterly earnings releases. The S&P 500 index has reached yet another new record high at the level of 2,564.11. The Dow Jones Industrial Average reached a new record high at the level of 23,172.93, as it gained 0.7%, following IBM's better-than-expected quarterly earnings release. The technology Nasdaq Composite reached new record high of 6635.52, around 3 points above its Monday's high. The nearest important level of support of the S&P 500 index remains at around 2,550, marked by previous resistance level. The next support level is at 2,540, marked by recent fluctuations. The support level is also at 2,520-2,530, marked by previous daily gap up of 2,519.44-2,520.40 and short-term local lows. On the other hand, the resistance level is at around 2,560-2,565, marked by the above-mentioned new all-time high. The S&P 500 index extends its uptrend, as it slowly climbs higher. We still can see medium-term negative technical divergences along with technically overbought conditions. However, there have been no confirmed negative signals so far: