The main U.S. stock market indexes gained 0.3-0.4% yesterday, rebounding after Tuesday’s sell-off, as investors hoped that the Syrian crisis would be resolved in a peaceful manner, somehow. However, the broad market S&P500 index deepened its downtrend and approached the June-August uptrend’s 61.8% (Fibonacci golden ratio) retracement of 1,617.38. The nearest important level of resistance is at 1,652.54-1,656.02, marked by Tuesday’s daily gap down. The S&P500 continues its month-long downtrend, with no confirmed trend reversal signals, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly positive, as the European stock market indexes have gained 0.4-0.7%. The U.S. index futures have gained 0.2-0.3% vs. yesterday’s closing prices. Investors will now wait for some important economic releases: Initial Claims and the second estimate of the U.S. Q2 GDP growth, both to be announced at 8:30 a.m. The S&P500 futures contract (CFD) fluctuates below the level of resistance at 1,640-1,650. The nearest support level is at around 1,630, marked by the recent local bottoms. Still with no clear buy signals, however some sort of a double bottom pattern formation cannot be excluded here. The short-term downward trend line is currently at around 1,665, as the 15-minute chart shows:

Thank you,
Paul Rejczak