The main U.S. Stock market indexes gained 0.1-0.7% on Thursday, as investors hoped for the uptrend to resume. The S&P500 index is in the short-term correction, hovering near the May 22 local top of 1,687.18, just below the Tuesday’s new all-time high at 1,698.78. The ongoing quarterly earnings season translates into market uncertainty and recently announced better-than-expected economic data has increased worries of a possible monetary tightening by the Fed. The S&P500 fluctuates below the psychological barrier of 1,700, and the nearest support is at around 1,670-1,675, marked by some of the previous local tops and the November-May upward trend line, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, despite a sharp sell-off in the Japan stock market this morning. The major European stock market indexes have been mixed, keeping the overall market sentiment rather neutral. The S&P500 futures contract (CFD) is in a correction, however, it is some sort of a flat correction with the nearest support at around 1,665-1,680, marked by the mid-month consolidation. In case of a deeper correctional move, the next possible support level is at 1,640-1,650, marked by the previous short-term consolidation, as the 15-minut chart shows:

Thank you,
Paul Rejczak