The major U.S. stock market indexes gained 0.1-0.4% on Wednesday in the half-day trade, extending the recent consolidation. Investors are waiting for the key economic data announcements today. At 7:30 a.m. the Nonfarm Payrolls and the Unemployment Rate for the month of June will be published. Wednesday’s data concerning the ADP Employment Change Report came in better than expected, so the expectations before today’s announcements are quite high. The S&P500 index futures contract (CFD) indicates a higher opening of the stock market today (almost 1% higher).

The S&P500 index continues to fluctuate just below its important May-June downtrend price retracements, also remaining below the previously broken November-May upward trend line. So, technical analysis still favors the sell-side here, but a break out of the potential trend continuation bull flag pattern cannot be excluded, as we can see on the daily chart:

The S&P500 CFD continues its short-term upward trend, as the price broke out above the recent consolidation’s upper limit yesterday. The previous resistance at around 1,615 acts as a support level now. The market has returned into the first half of June consolidation zone and the consolidation’s upper boundary acts as resistance at 1,640-1,650 now, as we can see on the 15-minute chart:

Thank you,
Paul Rejczak