The main U.S. stock market indexes lost 0.2-0.6% on Friday, extending their recent consolidation, after selling off in August. The indexes are expected to bounce off the consolidation’s lower limit, as investors react positively to President Obama’s August 31 statement on Syria. The S&P500 index fluctuates around the June-August uptrend’s 50% retracement. The nearest important resistance is at 1,652.54-1,656.02, marked by last Tuesday’s daily gap down. We have no confirmed trend reversal signals, as the index has been in a downward channel since the beginning of August, staying in a four-month long consolidation area, as the daily chart shows:

Expectations before the opening of today’s session are positive, even though the market sentiment has cooled down since yesterday, with index futures currently up 0.6-0.8% vs. their Friday’s closing prices. The European stock market indexes have lost 0.3-0.6% so far. Investors will now wait for the U.S. economic data announcements: ISM Index and Construction Spending numbers, both to be released at 10:00 a.m. The S&P500 futures contract (CFD) extends its fluctuations over the level of resistance at around 1,625-1,630, still well below its month-long downward trend line, as we can see on the 15-minute chart:

Thank you,
Paul Rejczak