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

Intraday (next 24 hours) outlook: bearish
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish

The U.S. stock market indexes gained between 0.1% and 0.8% on Friday, extending their recent rally as investors continued to buy stocks at higher levels. The S&P 500 index got close to its January 15 all-time high of 1,850.84 (Friday's daily high at 1,841.65). The nearest important resistance is at 1,840-1,850. On the other hand, the support remains at 1,800-1,810, marked by the November-December consolidation, among others, as we can see on the daily chart:

Expectations before the opening of today's session are virtually flat, with index futures currently mixed between -0.1% and 0.0%. The European stock market indexes have lost 0.1-0.5% so far, following weaker-than expected economic data release from Germany. Investors will now wait for some U.S. economic data announcements: Empire Manufacturing number at 8:30 a.m., NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract (CFD) trades slightly below its recent highs, fluctuating within a rather narrow range. The resistance is at around 1,840, and the nearest support is at 1,825-1,830, as the 15-minute chart shows:

The technology Nasdaq 100 futures contract (CFD) is in an analogous short-term consolidation, just below its recent highs. The resistance is at around 3,670, and the support is at 3,640-3,650. For now, it looks like a topping consolidation, as the market might retrace some of the recent uptrend:

Thank you.

Paul Rejczak
Stock Trading Strategist
Stock Trading Alerts
SunshineProfits.com

Stock market strategist, who has been known for quality of his technical and fundamental analysis since the late nineties. He is interested in forecasting market behavior based on both traditional and innovative methods of technical analysis. Paul has made his name by developing mechanical trading systems. Paul is the author of Sunshine Profits’ premium service for stock traders: Stock Trading Alerts.

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Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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