Topping pattern or just pause before another leg up?
Intraday trade: Our Friday's intraday trading outlook was bearish. It proved wrong because the S&P 500 index gained 0.3% following a slightly higher opening of the trading session. We still can see some short-term overbought conditions. Therefore, an intraday short position is favored. Stop-loss is at the level of 2,605 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 gained between 0.1% and 0.7% on Friday, as investors reacted to monthly jobs data and quarterly earnings releases. The S&P 500 index has reached a new record high of 2,588.42, just 0.02 of a point above its Wednesday's daily high. The Dow Jones Industrial Average was relatively weaker than the broad stock market again, as it gained just 0.1%. However, the blue-chip index reached a new record high at the level of 23,557.06. The technology Nasdaq Composite extended its uptrend, as it reached a new record high at 6,765.14, following better-than-expected quarterly earnings release from Apple. The nearest important level of support of the S&P 500 index is at around 2,575, marked by recent fluctuations. The next support level is at 2,565-2,570, marked by some previous local lows. The next support level is also at 2,560. On the other hand, a potential resistance level is at around 2,590-2,600, marked by the record high. The S&P 500 index extended its over eight-year-long bull market recently, as it reacheda new record high closer to the 2,600 mark. Will the bull market continue? Or is this some topping pattern ahead of a downward reversal? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions: