Our Friday's neutral intraday outlook has proved accurate. The S&P 500 Index continued to fluctuate around the level of 2,500, as it remained close to a new record high. The market may extend its short-term consolidation again. The support level is relatively close, with the September 12 daily gap up of 2,488.95-2,490.37. Therefore, we still prefer to be out of the market, avoiding low risk/reward ratio trades.
Our intraday outlook remains neutral, 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 were mixed between -0.04% and +0.07% on Friday, as investors continued to hesitate following some economic data, quarterly corporate earnings releases. The S&P 500 Index remained close to Wednesday's new record high of 2,508.85. It closed above 2,500 mark on Friday. The Dow Jones Industrial Average retraced some of its recent advance. However, it remained close to Thursday's new record high of 22,419.51. The technology Nasdaq Composite bounced off a support level at 6,400. It closed around 0.8% below last Monday's new all-time high of 6,477.77. The nearest important level of resistance of the S&P 500 Index remains at around 2,510. On the other hand, the support level is at 2,490-2,500, 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 level of support is also at 2,460, marked by previous short-term consolidation. 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. We still can see medium-term negative technical divergences, but will they lead to a downward correction?