The major U.S. stock market indexes gained 0.2-0.6% yesterday as investors reacted positively to President Obama’s August 31 statement on Syria. However, expectations were raised during the long holiday weekend index futures trade. The S&P500 index continues to fluctuate around the June-August uptrend’s 50% retracement level of 1,635. The nearest important resistance is last Tuesday’s daily gap down at 1,652.54-1,656.02. The market approached this area yesterday, but then quickly retreated, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, as the European stock market indexes have lost 0.4-0.6%. Investors will now wait for the U.S. economic data announcements: Trade Balance at 8:30 a.m. and Fed’s Beige Book report at 2:00 p.m. The most important data announcement this week will be Friday’s jobs report for the month of August, as it may further determine whether or not the Fed is ready to taper its QE program. The S&P500 futures contract (CFD) is in a short-term consolidation, with the nearest level of resistance at 1,640-1,650 and the support level at around 1,625-1,630, marked by some of the recent local bottoms, as the 15-minute chart shows:

Thank you,
Paul Rejczak