Broad Stock Market At New Highs – Will Uptrend Continue?

Briefly: In our opinion, no speculative positions are justified.

Our intraday outlook remains 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 U.S. stock market indexes gained between 0.1% and 0.7% on Friday, during a shortened trading session as investors’ sentiment remained bullish. The S&P 500 index has reached yet another new all-time high at the level of 2,092.70. The nearest important level of resistance is at around 2,090-2,100. On the other hand, support level is at 2,080, marked by previous local high, among others. There have been no confirmed negative signals so far, however, we can see some overbought conditions accompanied by negative technical divergences:

Expectations before the opening of today’s trading session are slightly negative, with index futures currently down 0.1-0.2%. The main European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) retraces some of its recent move up, as it trades along the level of 2,080. The nearest important level of resistance is at around 2,085-2,090, marked by last week’s highs. On the other hand, support level remains at 2,060-2,070, among others, as we can see on the 15-minute chart:

The technology Nasdaq 100 futures contract (CFD) followed a similar path, as it bounced off resistance level at around 4,320. The nearest important level of support is at 4,290-4,300, as the 15-minute chart shows:

Concluding, the broad stock market slightly extended its rally on Friday, as the S&P 500 index reached new all-time high. We can see some short-term overbought conditions, however, there have been no confirmed negative signals so far. Therefore, 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.