The U.S. stock market closed virtually flat yesterday, although the daily volatility was relatively high as investors reacted to the Federal Reserve policy announcement. The Fed will maintain its monetary easing policy, which is positive for the stock market. The S&P500 index fluctuates just below its July 23 all-time high of 1,698.78. It still looks like a flat correction within the uptrend. The nearest support level remains at 1,675-1,680, marked by the recent local bottoms, as the daily chart shows:

In the short-term we can see some increased volatility, however, the S&P500 futures contract (CFD) remains in the consolidation. The resistance level is at around 1,690-1,695, marked by thelast week’s highs. The support level is at 1,670-1,680, as we can see on the 15-minute chart:

Expectations before the opening of today’s session are positive as the stock exchanges in Asia and Europe have gained. Investors will wait for some economic data announcements now: Challenger Job Cuts report at 7:30 a.m., Initial Claims at 8:30 a.m., ISM Index and Construction Spending at 10:00 a.m., and most of all, tomorrow’s monthly unemployment data.

Thank you,
Paul Rejczak