Stocks keep going higher, but will they continue?
Our yesterday's intraday trading outlook was neutral. It proved correct because the S&P 500 index gained just 0.1% following slightly lower opening of the trading session. The index may retrace some of its recent rally today after neutral of the trading session. 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) is neutral: Short-term outlook (next 1-2 weeks) is neutral: Medium-term outlook (next 1-3 months) is neutral.
The main U.S. stock market indexes gained 0.1% on Wednesday, slightly extending their uptrend, as investors' sentiment remained bullish. The S&P 500 Index has reached new record high at the level of 2,540.53. The Dow Jones Industrial Average reached new record high at the level of 22,685.94, and the technology Nasdaq Composite reached new all-time high at the level of 6,546.46. The nearest important level of resistance of the S&P 500 Index is at around 2,540-2,550. On the other hand, the nearest important level of support is at around 2,520, marked by Tuesday's daily gap up of 2,519.44-2,520.40. The next support level is at 2,510, marked by a previous level of resistance and local highs. The support level is also at 2,490, marked by the September 12 daily gap up of 2,488.95-2,490.37, among others. The S&P 500 Index accelerated its uptrend recently. We still can see medium-term negative technical divergences, but will they lead to a downward correction?