The major U.S. stock market indexes gained 0.1-0.5% on Friday, extending their short-term consolidation. Investors are hesitant as profit-taking pressures, following recent gains that sent indexes to their all-time highest. However, the ongoing quarterly earnings releases and better-than-expected economic data announcements still have a positive impact on the market sentiment. The S&P500 index continues to fluctuate in a relatively tight range, near its July 23 all-time high of 1,698.78. The nearest psychological resistance level is still at around 1,700, and the support level is at 1,670-1,675, marked by the recent short-term bottoms, as we can see on the daily chart:

The European stock market indexes gained 0.3-0.5% today morning, but the expectations before the opening of today’s session in the U.S. are slightly negative. There is no clear direction in the short-term, as the S&P500 futures contract (CFD) is fluctuating around the level of 1,680. The resistance level is at 1,690-1,695, and the support level is at 1,670 (some of the recent local bottoms). For now, it looks like a flat correction of the month-long uptrend, still above the July 10 Fed-driven after-hours move up, as the 15-minute chart shows:

Thank You,
Paul Rejczak