Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is neutral, and our short-term outlook is neutral:
Intraday (next 24 hours) outlook: neutral
Short-term (next 1-2 weeks) outlook: neutral
Medium-term (next 1-3 months) outlook: neutral
Long-term outlook (next year): bullish
The main U.S. stock market indexes gained between 1.1% and 1.4%, extending their uptrend, as investors reacted to the Bank of Japan stimulus program announcement. The S&P 500 index got very close to the September 19th all-time high of 2,019.26. The nearest important resistance level is at around 2,020, marked by an all-time high. On the other hand, the level of support is at 2,000, among others. There have been no confirmed negative signals so far, however, we can see some short-term overbought conditions:
Expectations before the opening of today’s trading session are virtually flat, with index futures currently down 0.1%. The European stock market indexes have lost 0.1-0.3% so far. Investors will now wait for some economic data announcements: ISM Index, Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) is in an intraday consolidation, as it trades close to all-time high. The nearest important level of resistance is at around 2,010-2,015, and the support level is at 2,000, as we can see on the 15-minute chart:
The technology Nasdaq 100 futures contract (CFD) follows a similar path, as it moves along the level of 4,150. The nearest important level of resistance seems to be at 4,160-4,170. There have been no confirmed negative signals so far, as the 15-minute chart shows:
Concluding, the broad stock market extended its uptrend, following better-than-expected economic data releases. There have been no confirmed negative signals so far. However, we can see some short-term overbought conditions which may lead to a downward correction. We prefer to be out of the market, avoiding low risk/reward ratio trades. We will let you know when we think it is safe to get back in the market.