The U.S. stock market indexes lost 0.2-0.4% yesterday, as investors continued to take profits following the recent uptrend. The S&P500 index extends its short-term consolidation near the July 23 all-time high of 1,698.78, still fluctuating below the psychological resistance level of 1,700, as we can see on the daily chart:

The end of the month brings some uncertainty, as the next few days are filled with important economic data announcements: Consumer Confidence today, GDP, ADP Employment Change, Chicago PMI followed by FOMC Rate Decision tomorrow, ISM index and Initial Claims on Thursday and possibly the most important of them all – unemployment data on Friday, amongst others. The S&P500 futures contract (CFD) continues to fluctuate in a relatively tight range, around the level of 1,680, as the 15-minute chart shows:

Expectations before the opening of today’s session are virtually flat, as the main European stock market indexes have gained 0.1-0.2%. Investors will wait for the above-mentioned U.S. economic data announcements; the reaction to these data may cause a breakout above or below the current consolidation. For now, it looks like a flat correction of the S&P500’s month-long uptrend, however, a negative scenario cannot be excluded, as the profit taking may drive the stock market down.

Thank You,
Paul Rejczak