The main U.S. stock market indexes gained 0.7-1.1% yesterday, as investors hoped for the end of a month-long downward correction. The S&P500 index approached the resistance level at 1,652.54-1,656.02, marked by last Tuesday’s daily gap down once again and managed to close inside the gap area. So, the market is testing its resistance level right now, consolidating over the support level at around 1,635, marked by the June-August uptrend’s 50% retracement. The buyers hope for another bull-flag type trend continuation formation, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, as the major European stock market indexes have been mixed. Investors will now wait for some important U.S. economic data announcements: ADP Employment Change Report at 8:15 a.m., Initial Claims at 8:30 a.m. ISM Services and Factory Orders at 10:00 a.m. However, the expectations are focused on tomorrow’s unemployment data releases. The Employment Change Report announcement will be watched closely as a predictor for tomorrow’s Nonfarm Payrolls data release. The S&P500 futures contract (CFD) is at the resistance level of around 1,655, marked by a month-long downward trend line, as the 15-minute chart shows:

Thank you,
Paul Rejczak