The main U.S. stock market indexes gained 0.2-0.8% yesterday, as investors bet that today’s Fed decision concerning the fate of their QE program would not be negative for the market sentiment. The S&P500 index continues to fluctuate near the August 2 all-time high of 1,709.67, with no confirmed uptrend reversal signals. The nearest important level of support is at 1,688.73-1,691.70, marked by Monday’s daily gap up. On the other hand, the resistance is at around 1,710, marked by the August all-time high, as we can see on the daily chart:

The S&P500 index futures (CFD) point to a little higher open today morning, as the European stock market indexes have gained 0.1-0.3%. However, the FOMC announcement at 2:00 p.m. should be the main event today. The Fed will decide whether to cut back on its bond purchases, known as Quantitative Easing program. The S&P500 CFD is still in a short-term uptrend, as the price continues to fluctuate over the two-week long upward trend line. The resistance level is at around 1,700 and the nearest level of support is at 1,680-1,690, as the 15-minute chart shows:

Thank you,
Paul Rejczak