The U.S. Stock market indexes gained 0.4-1.0% yesterday, as investors were counting on the long-term uptrend to resume, after retracing almost 50% of the June-August move up. The technology sector was the strongest sector yesterday, despite halting Nasdaq trading on system failure for three hours. The broad market S&P500 index continues to fluctuate, bouncing off the support level at around 1,635-1,650, marked by the 50% retracement of June-August uptrend’s at 1,635.00. The resistance level remains at 1,679.61-1,684.83, marked by the August 15 gap down, as the daily chart shows:

Expectations before the opening of today’s session are virtually flat, as the main European stock markets have been mixed. Investors await the New Home Sales announcement for the month of July at 10:00 a.m., but the key event should be the highly anticipated Federal Reserve’s conference speeches in Jackson Hole. The S&P500 futures contract (CFD) bounced off the support level at around 1,640-1,650, however, there are still no confirmed trend reversal signals, as it only looks like a correction within a downtrend. The nearest resistance level is at 1,665, marked by the previous consolidation’s lower limit, as we can see on the 15-minute chart:

Thank you,
Paul Rejczak