Stocks Fluctuate Along Record Highs - Which Direction Is Next?

Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,150 and profit target at 1,980, S&P 500 index)

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

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

The U.S. stock market indexes lost 0.3-0.5% on Friday, retracing some of their recent advance, as investors reacted to worse-than-expected economic data releases. The S&P 500 index remains relatively close to its February 25 all-time high of 2,119.59. The nearest important resistance level is at around 2,115-2,120. On the other hand, level of support is at 2,085-2,100, marked by previous resistance level, among others. There have been no confirmed negative signals so far. However, we can see overbought conditions accompanied by negative divergences:

Expectations before the opening of today's trading session are slightly positive, with index futures currently up 0.1-0.2%. The main European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements:

Personal Income, Personal Spending, PCE Prices-Core number at 8:30 a.m., ISM Index, Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) remains within its short-term consolidation, as it continues to fluctuate along the level of 2,100. The nearest important level of resistance is at around 2,110-2,120, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) is within a similar short-term consolidation, as it continues to trade along the level of 4,450. The nearest important level of support is at 4,430-4,440, marked by some previous local lows, as the 15-minute chart shows:

Concluding, the broad stock market retraced some more of its recent advance on Friday. However, there have been no confirmed negative signals. We continue to maintain our speculative short position (S&P 500 index), as we expect downward correction or an uptrend reversal. Stop-loss is at 2,150, and potential profit target is at 1,980. You can trade S&P 500 index using futures contracts (S&P 500 futures contract - SP, E-mini S&P 500 futures contract - ES) or an ETF like the SPDR S&P 500 ETF - SPY. It is always important to set some exit price level in case some events cause the price to move in the unlikely direction. Having safety measures in place helps limit potential losses while letting the gains grow.