The major U.S. stock market indexes gained 0.1-0.8% yesterday, continuing their rebound following Tuesday’s sell-off, with technology sector leading the way, as the Nasdaq Composite gained 0.8%. The market sentiment was boosted by better-than-expected economic data announcements. The S&P500 index fluctuates around the level of 1,635, marked by the June-August uptrend’s 50% retracement. The next possible support level is at 1,617.38, marked by the uptrend’s 61.8% (Fibonacci golden ratio) retracement and the nearest level of resistance is at 1,652.54-1,656.02, marked by Tuesday’s daily gap down. Still, we have no confirmed trend reversal signals, as the index remains in a flat correction of the recent downtrend. The market is in a broad sideways consolidation phase, trading between around 1,550 and 1,700 since May, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly positive, despite fact that the European stock market indexes have lost 0.4-0.6%. Investors will now wait for further economic releases: Personal Income/Spending at 8:30 a.m., Chicago PMI at 9:45 a.m. and Michigan Sentiment at 9:55 a.m. The S&P500 futures contract (CFD) continues to fluctuate below the nearest resistance level at around 1,640-1,650. The support level remains at 1,630, as the 15-minute chart shows:

Thank you,
Paul Rejczak