Briefly:

Intraday trade: Our Tuesday’s intraday trading outlook was neutral. It proved quite accurate because the S&P 500 index gained just 0.1% following relatively narrow intraday trading range. We still can see some short-term overbought conditions. Yesterday’s reversal off new record high is a short-term negative signal. Therefore, intraday short position is favored. Stop-loss is at the level of 2,595 and potential profit target is at 2,545 (S&P 500 index).

Our intraday outlook is bearish today. Our short-term outlook is neutral, and our medium-term outlook is neutral:

Intraday outlook (next 24 hours): bearish
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 -0.2% and +0.3% on Wednesday, as investors took short-term profits off the table following recent rally. The S&P 500 index reached new record high at the level of 2,588.40, before closing slightly below 2,580. The Dow Jones Industrial Average was relatively stronger than the broad stock market, as it gained 0.3%. The blue-chip index reached new all-time high at the level of 23,517.71. The technology Nasdaq Composite reached new record high at the level of 6,759.66, but it closed 0.3% lower. The nearest important level of support of the S&P 500 index is at 2,570-2,575, marked by some recent local lows. The next support level remains at 2,560-2,565, marked by previous local lows. The support level is also at 2,545-2,550, marked by last Wednesday’s daily low, among others. On the other hand, potential resistance level is at around 2,590-2,600, marked by record high. The S&P 500 index extended its over eight-year-long bull market yesterday, as it reached new record high closer to 2,600 mark. Will bull market continue? Or is this some topping pattern ahead of downward reversal? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions:

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