Stocks At Last Year's Record High

The U.S. stock market indexes lost 0.2% on Wednesday, as investors took some short-term profits off the table following Tuesday's rally. The S&P 500 index retraced almost all of its medium-term downward correction of 20.2%. The broad stock market's gauge is now just 0.5% below September the 21st record high of 2,940.91. Both the Dow Jones Industrial Average and the Nasdaq Composite lost 0.2% on Wednesday.

The nearest important resistance level of the S&P 500 index is at around 2,940, marked by the mentioned record high. On the other hand, the support level is now at 2,920, marked by the recent resistance level. The support level is also at 2,900.

The broad stock market retraced all of its December sell-off and it broke above the medium-term resistance level of around 2,900 recently. So is it still just a correction or a new medium-term uptrend? We may see an attempt at getting back to the record high. There have been no confirmed negative medium-term signals so far. The index got very close to its last October all-time high, as we can see on the daily chart:

 

Mixed Expectations, Will Uptrend Continue?

Expectations before the opening of today's trading session are mixed because the index futures contracts trade between -0.5% and +0.2% vs. their Wednesday's closing prices. The European stock market indexes have lost 0.1-0.4% so far. Investors will wait for some economic data announcements: Durable Goods Orders, Unemployment Claims at 8:30 a.m. They will also wait for more quarterly corporate earnings releases. Stocks will likely extend their short-term consolidation along the last year's record high. There have been no confirmed negative signals so far. However, we can see some short-term technical overbought conditions.

The S&P 500 futures contract trades within an intraday consolidation, as it remains close to the record high. The nearest important resistance level is at around 2,940. On the other hand, the support level is at 2,925-2,930, among others. The futures contract is slightly below its recent upward trend line this morning, as the 15-minute chart shows:

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Disclosure: None.

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