The main U.S. stock market indexes gained between 1.1% and 1.4% on Wednesday, as investors reacted to the news that Washington’s debt-crisis deal has been reached. The S&P 500 index broke above the resistance level at around 1,700-1,710, which is a positive signal. The nearest important resistance is at 1,729.86, marked by the September 19 all-time high. On the other hand, the support is currently at around 1,700-1,710. The market is near the upper limit of the July-October topping consolidation, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly negative, with index futures currently down between 0.1% and 0.2%. The European stock market indexes have lost 0.1-0.5% so far. Investors will now wait for some economic data announcements: Initial Claims, Housing Starts and Building Permits at 8:30 a.m., Industrial Production and Capacity Utilization at 9:15 a.m., and the Philadelphia Fed index at 10:00 a.m. The S&P 500 futures contract (CFD) is in a short-term consolidation, after breaking above the level of 1,700. The nearest support is at 1,705-1,710. There are no confirmed uptrend reversal signals so far, however, some profit-taking pressure cannot be excluded. The nearest resistance is at around 1,715, as the 15-minute chart shows:

Our intraday outlook, as well as our short-term outlook remains neutral for now, as there may be some profit-taking pressure following recent rally:

Intraday outlook: neutral
Short-term outlook: neutral
Medium-term outlook: neutral
Long-term outlook: bullish

The above analysis is the first of today's 2+ Stock Trading Alerts. Stay as updated as possible on the current events and trends on the stock market by choosing our Stock Trading Alert subscription service.

Thank you,
Paul Rejczak