The main U.S. stock market indexes lost between 0.4% and 0.8% yesterday, as investors feared Washington’s debt-ceiling crisis. The S&P 500 index finished down 0.6%, near the level of 1,680, however, it managed to rebound from the earlier low at 1,674.99, as investors reacted to better-than expected data on the U.S. economy (the Chicago PMI report for the month of September). The nearest important support is at 1,672.40-1,674.32, marked by the September 10 daily gap up. There is also a support at 1,678.67, marked by the August-September uptrend’s 50% retracement, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently gaining 0.4-0.5%, as investors see buying opportunity here. The European stock market indexes have been mixed so far. Investors will now wait for some economic data announcements: ISM Index and Construction Spending at 10:00 a.m. The S&P 500 futures contract (CFD) rebounded from the support at around 1,665, marked by the previous consolidation. The price fluctuates near its recent downward trend line. The resistance is at 1,685-1,690, marked by last week’s consolidation. Still with no confirmed downtrend reversal signals, as the 15-minute chart shows:

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Thank you,
Paul Rejczak