Sent to subscribers on March 21, 2016, 6:56 AM.
Briefly: In our opinion, no speculative positions are justified.
Our intraday outlook is now neutral, and our short-term outlook is neutral. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): neutral
Medium-term outlook (next 1-3 months): bearish
Long-term outlook (next year): neutral
The main U.S. stock market indexes gained 0.2-0.7% on Friday, extending their short-term uptrend, as investors reacted to some economic data releases. The S&P 500 index is at the resistance level of 2,050, after breaking above the level of resistance of 2,040, marked by the early January daily gap down at 2,038.20-2,043.62. The next important level of resistance is at around 2,080, marked by the late December local high of 2,081.56. On the other hand, support level remains at 2,000 mark, and the next support level is at 1,960-1,980, marked by previous level of resistance. There have been no confirmed negative signals so far. However, we can see some technical overbought conditions. Will this uptrend extend even higher? The index continues to trade within a slightly descending medium-term trading channel, as we can see on the daily chart: