The main U.S. stock market indexes gained 0.4-0.8% yesterday, as investors hoped for the end of a short-term downward correction, neglecting debt-ceiling crisis and Federal Reserve tapering fears. However, the S&P 500 index continues to fluctuate near the level of 1,700, testing its July-August consolidation range. The nearest important support is at 1,688.73-1,691.70, marked by the September 16 daily gap up. The next possible level of support is at 1,687.18, marked by the May high. For now, it only looks like a flat correction of the recent move down, as there are no confirmed trend reversal signals. The resistance remains at 1,729.86, marked by last week’s high, as we can see on the daily chart:

Expectations before the opening of today’s session are quite negative, with index futures losing 0.3-0.4% currently, as the European stock market indexes have lost 0.3-0.7%. Investors will now wait for some economic data announcements: Personal Income and Personal Spending at 8:30 a.m., Michigan Sentiment at 9:55 a.m. The S&P 500 futures contract (CFD) trades in a relatively narrow range, fluctuating around the level of 1,690. The nearest resistance remains at 1,700, as the 15-minute chart shows:

Thank you,
Paul Rejczak

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