More Uncertainty, As Stock Market Indexes Trade Along New Record Highs

Briefly:

Intraday trade: Our Wednesday’s intraday trading outlook was neutral. It proved accurate because the S&P 500 was unchanged following neutral opening of the trading session. The index extended its short-term consolidation. We still can see some short-term technical overbought conditions. However, the index continues to trade relatively close to its record highs. Therefore, we prefer to be out of the market again, 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): neutral
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 +0.2% on Wednesday, as investors continued to hesitate following recent fluctuations along new record highs. The S&P 500 index extends its short-term consolidation along the level of 2,650. It trades around 1.3% below Monday’s new record high of 2,665.19. The Dow Jones Industrial Average was relatively weaker than the broad stock market once again, as it lost 0.2% and got closer to 24,000 mark, retracing its Monday’s rally to new record high of 24,534.04. The technology Nasdaq Composite was relatively strong, as it gained 0.2%. It remains within a short-term consolidation along the level of 6,800-6,900. The nearest important level of support of the S&P 500 index remains at around 2,625-2,630, marked by recent fluctuations. The next support level is at 2,600-2,610, marked by Friday’s local low. The support level is also at 2,590, marked by last Tuesday’s daily gap up of 2,584.64-2,589.17. On the other hand, resistance level is at 2,650, marked by previous support level. The next level of resistance is at around 2,660-2,665, marked by all-time high. Will the S&P 500 index continue its uptrend? Or is this some volatile topping pattern before medium-term downward correction? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions along with negative technical divergences: