Briefly:

Intraday trade: Our Wednesday’s intraday trading outlook was bearish. It proved accurate because the S&P 500 index lost 0.6%, following lower opening of the trading session. The market fell the lowest since late October, before bouncing off support level. The index almost reached our intraday profit target level of 2,555 (daily low at 2,557.45). We still can see medium-term negative technical divergences. Expectations before the opening of today’s trading session are positive, but the market may resume its downtrend at some point. Therefore, intraday short position is favored again. Stop-loss is at the level of 2,595 and potential profit target is at 2,545 (S&P 500 index).

Our intraday outlook is bearish today. Our short-term outlook is neutral, and our medium-term outlook is neutral:

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

The U.S. stock market indexes lost 0.5-0.6% on Wednesday, extending their recent move down, as investors reacted to global stock markets’ decline, economic data releases, among others. The S&P 500 index fell the lowest since late October and it traded slightly below the level of 2,560 yesterday. It is now around 1.2% below last week’s Tuesday’s all-time high of 2,597.02. The Dow Jones Industrial Average continued its short-term downtrend, as it lost 0.6%. The technology Nasdaq Composite was relatively stronger than the broad stock market, as it closed within its two-week-long consolidation along the level of 6,700-6,800. The nearest important level of support of the S&P 500 index is now at 2,555-2,560, marked by local low. The next support level is at around 2,545, marked by some October local lows. On the other hand, resistance level is at 2,580-2,585, and the next level of resistance is at 2,595-2,600, marked by record high. The S&P 500 index retraces some of its September-November rally. Is this a topping pattern or just downward correction before another leg up? There have been no confirmed negative signals so far. However, we can see medium-term technical overbought conditions along with negative technical divergences: