Intraday trade: Our intraday trading outlook was bearish yesterday. It proved wrong because the S&P 500 index gained 0.2% again. However, the index continued to trade within a relatively narrow intraday trading range. The market may retrace some of its recent rallies, as investors continue taking short-term profits off the table. Therefore, the intraday short position is favored again. Stop-loss is at the level of 2,565 and potential profit target is at 2,530 (S&P 500 index).
Our intraday outlook was bearish yesterday. 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 gained 0.2% on Wednesday, slightly extending their short-term uptrend, as investors' sentiment remained bullish following Tuesday's FOMC Minutes release, among others. The S&P 500 index has reached yet another new all-time high at the level of 2,555.24, just 0.01 point above its Tuesday's high. The broad stock market extends its short-term consolidation, as investors take some profits off the table following recent rally. The Dow Jones Industrial Average reached a new record high at the level of 22,872.89 Tuesday, as it gained 0.2%. The technology Nasdaq Composite remained slightly below its Tuesday's record high of 6,608.30. The nearest important level of support of the S&P 500 index is still at around 2,540, marked by recent fluctuations. The next support level is at 2,520-2,530, marked by last week's Tuesday's daily gap up of 2,519.44-2,520.40 and short-term local lows. The support level is also at 2,500-2,510, marked by the previous level of resistance and local highs. On the other hand, the resistance level is at 2,550-2,555, marked by the above-mentioned new all-time high. The S&P 500 index accelerated its uptrend recently. We still can see medium-term negative technical divergences along with technically overbought conditions. However, there have been no confirmed negative signals so far: