S&P 500 at new record high, will uptrend continue?
Our Wednesday's intraday trading outlook was neutral. It proved accurate because the S&P 500 index lost 0.1%, following a neutral opening of the trading session. The market broke above its short-term consolidation last week. We still can see negative technical divergences along with medium-term overbought conditions. However, there have been no confirmed negative signals so far. Therefore, we prefer to be out of the market today, avoiding low risk/reward ratio trades.
Our intraday outlook is neutral today. Our short-term outlook is neutral, and our medium-term outlook is neutral:
Intraday outlook (next 24 hours): neutral. Short-term outlook (next 1-2 weeks): neutral. Medium-term outlook (next 1-3 months): neutral.
The main U.S. stock market indexes gained 0.1-0.3% on Friday, slightly extending their recent uptrend, as investors' sentiment remained bullish following quarterly earnings, economic data releases. The S&P 500 Index has reached a new all-time high at the level of 2,604.21. The Dow Jones Industrial Average was relatively weaker, as it remained below Tuesday's record high of 23,617.80. The technology Nasdaq Composite was relatively stronger than the broad stock market, as it gained 0.3% on Friday. It reached a new record high of 6,890.02. The nearest important level of support of the S&P 500 Index is at around 2,590, marked by last Tuesday's daily gap up of 2,584.64-2,589.17. The next support level is at 2,570-2,575, marked by short-term local lows. The level of support is also at 2,555-2,560. The S&P 500 Index broke slightly above 2,600 mark on Friday. But will it continue higher? Or is this some topping pattern before medium-term downward correction? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions along with negative technical divergences: