Intraday trade: Our Wednesday's intraday outlook has proved partly accurate. The S&P 500 index closed 0.4% higher, but it gained less than 4 points from its opening price. The index may continue to fluctuate along with the level of 2,500 today. It remains above the support level of the September 12 daily gap up of 2,488.95-2,490.37. Therefore, we prefer to be out of the market, avoiding low risk/reward ratio trades.
Our intraday outlook is neutral today, and our short-term outlook is bearish, as we expect a downward correction. Our medium-term outlook remains bearish:
Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): bearish
The main U.S. stock market indexes gained between 0.3% and 1.2% on Wednesday, extending their short-term fluctuations, as investors reacted to economic data releases, tax cut plan announcement, among others. The S&P 500 index has reached new record high at the level of 2,511.75 before closing slightly below its previous all-time high. The Dow Jones Industrial Average remained slightly below last Thursday's new record high of 22,419.51. The technology Nasdaq Composite was relatively stronger than the broad stock market again. It reached new all-time high at the level of 6,472.55, as it got slightly above its last week's Monday's high. The nearest important level of resistance of the S&P 500 index remains at around 2,510, marked by record high. On the other hand, support level is still at 2,490, marked by the September 12 daily gap up of 2,488.95-2,490.37, among others. The next support level remains at 2,465-2,475, marked by the September 11 daily gap up of 2,467.11-2,474.52. The S&P 500 index continued its long-term uptrend, as it reached new record highs above the level of 2,500. It was gaining despite some short-term technical overbought conditions. The market is currently trading along new record highs, remaining within relatively narrow trading range, so those overbought conditions decrease. We still can see medium-term negative technical divergences, but will they lead to a downward correction?
Above 2,500 Mark
Expectations before the opening of today's trading session are virtually flat, with index futures currently between -0.05% and 0.0% vs. Wednesday's closing prices. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: the U.S. GDP number, Initial Claims, Trade Balance, Wholesale Inventories at 8:30 a.m. The market expects that the U.S. Gross Domestic Product grew 3.0% in the second quarter of 2017 (final number). The S&P 500 futures contract trades within an intraday consolidation, following yesterday's move up. The nearest important level of resistance is at around 2,510, marked by new record high. On the other hand, support level is at 2,500, and the next level of support remains at 2,485-2,490, marked by previous resistance level. The support level is also at 2,480, marked by short-term consolidation. The futures contract is slightly above 2,500 mark, as the 15-minute chart shows: