The major U.S. stock market indexes lost 0.1-0.5% on Friday, as investors feared possible negative outcomes of Washington’s debt-ceiling crisis. The S&P 500 index was down 0.4% at 1,691.75, moving further away from the level of 1,700. The nearest important support is at 1,688.73-1,691.70, marked by the September 16 daily gap up. Also, a possible level of support is at around 1,687.18, marked by the May 22 high. On the other hand, the resistance is at around 1,700. The market remains in a downtrend, with no confirmed trend reversal signals, as we can see on the daily chart:

Expectations before the opening of today’s session are clearly negative, with index futures currently losing 0.7-0.8%. The main European stock market indexes have lost 0.8-1.2%. Investors will now wait for the Chicago PMI report announcement at 9:45 a.m. The S&P 500 futures contract (CFD) continues its short-term downtrend today, after gaping down earlier in the morning. The level of resistance is at around 1,680, marked by Friday’s low. We can see a possible level of support at 1,665, marked by the previous consolidation, as the 15-minute chart shows:

Thank you,
Paul Rejczak