The main U.S. Stock market indexes lost 0.6-0.7% as investors took profits, fearing a possible correction of the recent uptrend. The S&P500 index retreated from the August 2 all-time high of 1709.67, dropping below the short-term psychological support level at 1,700. The nearest support is at around 1,675-1,690 now, marked by the late July consolidation. On the other hand, the resistance level remains at 1,710, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly negative, as the major European stock market indexes have been mixed despite the sharp sell-off in Japan’s equity markets earlier this morning. The S&P500 futures contract (CFD) dropped below the recent consolidation’s lower limit, giving a short-term sell signal. The market tests its late July consolidation range now; it is a potential level of support at 1,670-1,690. The CFD has fully retraced the move up from the July 31 volatile session, a session marked by the Fed’s policy decision. The futures have made new highs over the last few weeks, but it is hardly an uptrend, the 15-minute chart shows:

Thank you,
Paul Rejczak