Intraday (next 24 hours) outlook: bullish
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 lost between 0.5% and 0.6% on Wednesday, retracing some of their recent move up, as investors took profits off the table. The S&P 500 index bounced off the resistance level at around 1,900, marked by Tuesday’s all-time high of 1,902.17. On the other hand, the nearest level of support is at 1,860-1,870, and the next support is at 1,850. For now, it looks like a short-term correction within an uptrend, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, with index futures mixed between -0.1% and +0.1%. The main European stock market indexes have lost 0.1-0.2% so far, following some worse-than-expected economic data releases. Investors will now wait for the U.S. economic data announcements: Initial Claims, Consumer Price Index and Empire Manufacturing number at 8:30 a.m., Industrial Production, Capacity Utilization at 9:15 a.m., Philadelphia Fed, NAHB Housing Market Index at 10:00 a.m. The S&P 500 futures contract (CFD) is in a short-term downward correction, retracing some of its recent rally. The nearest important support is at 1,880-1,885, marked by previous resistance, and the resistance remains at the psychological 1,900:

The technology Nasdaq 100 futures contract (CFD) trades in a relatively narrow range, following recent move up. The resistance is at 3,620-3,630, marked by the late April local high, among others. On the other hand, the support is at 3,580-3,600 (previous resistance). For now, it looks like a correction within short-term uptrend, as the 15-minute chart shows:

Concluding, there have been no confirmed negative signals so far, however, the broad stock market has retraced some of its recent uptrend. We continue to maintain our profitable long position, with stop-loss at 1,850 (S&P 500 index).

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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