Stock Trading Alert sent to subscribers on April 6, 2017, 6:58 AM.
Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,410, and profit target at 2,200, S&P 500 index).
Our intraday outlook is bearish, and our short-term outlook is bearish. Our medium-term outlook remains neutral, following S&P 500 index breakout above last year's all-time high:
Intraday outlook (next 24 hours): bearish
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): neutral
Long-term outlook (next year): neutral
The U.S. stock market indexes lost 0.2-0.6% on Wednesday, following relatively big move up, as investors reacted to the FOMC Minutes announcement. The S&P 500 index extended its short-term uptrend, before going closer to its recent local lows and support level of 2,350. The index remains around 2% below March 1 all-time high of 2,400.98. The Dow Jones Industrial Average closed below 20,700 mark, and technology Nasdaq Composite index reached new all-time high above the level of 5,900, before closing 0.6% lower. Is this a new uptrend or just upward correction within new medium-term downtrend? The nearest important level of support of the S&P 500 index is at around 2,350, marked by the above-mentioned recent local lows. The next support level is at 2,335-2,340, marked by local lows. The support level is also at 2,320, marked by February 13 daily gap up of 2,319.23-2,321.42 and last week's Monday's local low. On the other hand, the nearest important level of resistance is now at 2,370, marked by short-term local highs. The next resistance level is at 2,380-2,400, marked by all-time high, among others. We can see some short-term volatility following five-month-long rally off last year's November low at around 2,100. Is this a topping pattern before downward reversal? The uptrend accelerated on March 1 and it looked like a blow-off top pattern accompanied by some buying frenzy. The S&P 500 index continues to trade along its medium-term upward trend line, as we can see on the daily chart: