S&P 500 fluctuates as technology stocks sell off
Our Wednesday's intraday trading outlook was neutral. It proved accurate because the S&P 500 index lost 0.03%, following slightly higher opening of the trading session. The market broke above its short-term consolidation on Tuesday. 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 were mixed between -1.3% and +0.4% on Wednesday, as investors took some technology stocks profits off the table. The S&P 500 Index has reached new record high at the level of 2,634.89, before closing virtually flat (-0.03%). The Dow Jones Industrial Average was relatively stronger, as it gained 0.4%. It reached a new record high at the level of 23,959.76. The technology Nasdaq Composite was relatively very weak vs. the broad stock market, as it lost 1.3% yesterday. The nearest important level of support of the S&P 500 Index remains at 2,600-2,610, marked by recent resistance level. The next level of support remains at around 2,590, marked by last Tuesday's daily gap up of 2,584.64-2,589.17. The support level is also at 2,570-2,575, marked by short-term local lows. On the other hand, potential resistance level is at around 2,630-2,635, marked by new all-time high. Will the S&P 500 index 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: