Briefly:
Intraday trade: Our Friday’s intraday trading outlook was bearish. It proved partly wrong because the S&P 500 index lost 0.1% (neutral), following slightly lower opening of the trading session. The market remained within relatively narrow intraday trading range. We still can see technical overbought conditions along with negative divergences. Therefore, intraday short position is favored again. Stop-loss is at the level of 2,600 and potential profit target is at 2,555 (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 main U.S. stock market indexes were mixed between -0.2% and 0.0% on Friday, as investors hesitated following Thursday’s volatility. The S&P 500 index retraced its week-long advance on Thursday, as it fell below the level of 2,570, before bouncing off support level. It currently trades around 0.6% below last week’s Tuesday’s new all-time high of 2,597.02. The Dow Jones Industrial Average lost 0.2% on Thursday, after falling the lowest since late October. The technology Nasdaq Composite was unchanged on Friday. The nearest important level of support of the S&P 500 index is now at 2,565-2,570, marked by Thursday’s local low. The next support level is at 2,545-2,560, marked by some previous local lows. On the other hand, the nearest important level of resistance is at 2,585-2,590, marked by recent fluctuations. The next resistance level is at around 2,600, marked by Tuesday’s record high of 2,597.02. The S&P 500 index fluctuates following its September-November rally. Is this a topping pattern or just pause before another leg up? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions:
