Sent to subscribers on May 11, 2017, 6:56 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 main U.S. stock market indexes were mixed between -0.2% and +0.1% on Wednesday, extending their short-term fluctuations, as investors took short-term profits off the table. The S&P 500 index remains close to its Tuesday's new all-time high at the level of 2,403.87. The index has broken slightly above the March 1 high on Tuesday, before closing lower by 0.1%. The Dow Jones Industrial Average remained below the level of 21,000, and the technology Nasdaq Composite index continued to trade above the level of 6,100. Will the broad stock market index continue its eight-year-long bull market? The nearest important level of support of the S&P 500 index is now at 2,390, marked by short-term local low. The next support level remains at 2,375-2,380, marked by the April 25 daily gap up of 2,376.98-2,381.15. The support level is also at 2,355-2,370, marked by the April 24 daily gap up. On the other hand, the nearest important level of resistance is at 2,400-2.405, marked by new record high, among others. We can see some volatility following six-month-long rally off last year's November low at around 2,100. Is this a topping pattern before medium-term 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 is currently trading along its medium-term upward trend line, as we can see on the daily chart: