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 0.1% on Wednesday, slightly retracing their recent rally, as investors took some short-term profits off the table, following quarterly earnings releases, tax cuts plan announcement, among others. The S&P 500 index got close to its March 1 all-time high of 2,400.98, before bouncing off resistance level. It has closed around 0.5% below record high. Will it continue its eight-year-long bull market? The Dow Jones Industrial Average remained close to the level of 21,000, and relatively stronger technology Nasdaq Composite index remained above the level of 6,000, as it fluctuated along new record high. The nearest important level of support of the S&P 500 index is now at 2,375-2,380, marked by Tuesday’s daily gap up of 2,376.98-2,381.15. The next support level is at 2,355-2,370, marked by Monday’s daily gap up. The support level is also at around 2,350, marked by recent short-term consolidation. On the other hand, the nearest important level of resistance is at 2,400, marked by record high, among others. We can see some volatility following five-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: