Briefly:

Intraday trade: Our yesterday’s neutral intraday outlook has proved accurate. The S&P 500 index fluctuated within a relatively narrow trading range following Tuesday’s advance. The market may retrace some of its recent rally today, as the S&P 500 index trades close to potential resistance level of 2,500. On the other hand, support level is relatively close, at Tuesday’s daily gap up of 2,488.95-2,490.37. Therefore, we prefer to be out of the market once again, avoiding low risk/reward ratio trades.

Our intraday outlook is neutral, and our short-term outlook is bearish, as we expect downward correction. Our medium-term outlook remains bearish:

Intraday outlook (next 24 hours): neutral
Short-term outlook (next 1-2 weeks): bearish
Medium-term outlook (next 1-3 months): bearish

The U.S. stock market indexes gained 0.1-0.2% on Wednesday, slightly extending their short-term uptrend, as investors’ sentiment remained bullish following breakout above recent consolidation. The S&P 500 index has reached new all-time high at the level of 2,498.37, almost 8 points above its previous August 8 high of 2,490.87. The Dow Jones Industrial Average remained close to August 8 record high of 22,179.1. The technology Nasdaq Composite index continues to trade very close to record high of 6,460.84. The nearest important level of resistance of the S&P 500 index is at around 2,500. On the other hand, support level is at 2,490, marked by Tuesday’s daily gap up of 2,488.95-2,490.37. The next support level remains at around 2,465-2,475, marked by Monday’s daily gap up of 2,467.11-2,474.52. The level of support is also at 2,460, marked by last week’s short-term consolidation. The broad stock market resumed its long-term uptrend, as it reached new record high just below 2,500 mark. Will uptrend continue? Or is this a medium-term topping pattern ahead of downward correction?There have been no confirmed negative signals so far. However, we can see medium-term overbought conditions accompanied by negative technical divergences: