The U.S. stock market indexes lost between 0.4% and 0.9% yesterday, as investors continued to fear the ongoing debt-ceiling crisis and its possible negative consequences for the economy. The quarterly earnings releases were mixed, translating into further investors uncertainty. The S&P 500 index lost 0.7%, moving slightly below the level of 1,700. The resistance remains at around 1,700-1,710. There is no clear trend in the medium-term, with index fluctuating around the level of 1,700 for some time, as we can see on the daily chart:

Expectations before the opening of today’s session are positive, with index futures currently gaining between 0.1% and 0.4%. However, the main European stock market indexes have lost 0.2-0.9%. Investors will now wait for some economic data announcements: Consumer Price Index at 8:30 a.m., NAHB Housing Market index at 10:00 a.m., and finally the Fed’s Beige book at 2:00 p.m. Investors also wait for further quarterly earnings releases, as well as the political decisions concerning the budget crisis. The S&P 500 futures contract (CFD) is in a short-term consolidation, fluctuating around the level of 1,700. The nearest important resistance is at 1,705-1,710, marked by the recent highs, and the support is at 1,690, as the 15-minute chart shows:

Today’s session may bring some further consolidation. Hence, we change our intraday outlook to neutral:
Intraday outlook: neutral
Short-term outlook: neutral
Medium-term outlook: neutral
Long-term outlook: bullish

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Thank you,
Paul Rejczak