The three major U.S. stock market indexes were mixed on Wednesday, as investors feared the possibility of a correction within the recent uptrend. However, all that changed after the close of trade. The stock indexes futures rose after the Fed Chairman’s comments saying the monetary stimulus is still needed. At the same time the dollar sharply lost its value, with falling U.S. treasuries yields and rising commodities prices. The daily chart of the S&P500 index does not fully reflect the current market situation, showing some uncertainty in the area of the June 18 local top:

The cash market is ought to open higher today, as the European stock market indexes have gained around 1%, breaking above the two-day consolidation. The S&P500 futures contract (CFD) broke above its analogous consolidation during the after-hours trade, crossing the resistance zone at 1,640-1,650, marked by the early June consolidation’s upper boundary. That 10-point range should act as a close support level now, as the 15-minute chart shows:

Before the opening of today's trade there will be the Initial Claims data announcement (at 7:30 a.m.), but it is not likely to change the bullish market sentiment. It is worth mentioning that the ongoing quarterly earnings releases still have a positive impact on the stock market.

Thank you,
Paul Rejczak