The U.S. stock market was mixed yesterday, as investors hesitated after pushing the main indexes to all-time highs recently. The S&P500 index lost 0.4%, closing a little below the May 22 local top of 1,687.18. For now, it looks like a correction within an uptrend, driven by the profit-taking transactions mainly, with so-called “old economy” indexes relatively weaker, as the Nasdaq Composite index was flat yesterday. The S&P500 jumped off the psychological resistance level at 1,700 and its nearest support level is at around 1,670, marked by the mid-month consolidation’s lower boundary. Therefore, the extended medium-term consolidation scenario still cannot be excluded, as we can see on the daily chart:

Expectations before the opening of today’ session are negative, as the major European stock market indexes have lost 0.9-1.1%, despite some better-than-expected economic data announcements in the Eurozone. Investors will wait for U.S. economic data announcements now: Initial Claims and Durable Orders at 8:30 a.m. The breakout below the month-long trend lines is technically negative in the short-term; the market bounces off the resistance level at around 1,690-1,700 and it may get stuck inside the recent consolidation zone of 1,665-1,680 for a while, as the 15-minute chart shows:

Thank you,
Paul Rejczak