The main U.S. stock market indexes gained 0.1-0.5% on Friday, as investors hoped for the uptrend to continue, neglecting some worse-than-expected economic data announcements. The biggest news over the weekend was Larry Summers withdrawing from the Fed Chairman consideration. We can see a very positive reaction from the financial markets today morning. The S&P500 index continued to fluctuate in a rather tight range during the second half of last week. The resistance zone is at around 1,680-1,710, marked by the July-August topping consolidation and the August 2 all-time high of 1,709.67, amongst others. On the other hand, the nearest important support level is at 1,672.40-1,674.32, marked by the September 10 daily gap up. The index may witness another gap-up opening this morning, fueled by improved market sentiment. We are close to the long-term uptrend’s continuation, as the daily chart shows:

As already mentioned, expectations before the opening of today’s session are positive, with index futures currently gaining 1.1%. The European stock market indexes have gained 0.8-1.1%. Investors will now wait for some further economic releases: Empire Manufacturing at 8:30 a.m. and Industrial Production numbers at 9:15 a.m. The S&P500 futures contract (CFD) continues its uptrend, bouncing off two-week long uptrend. The daily gap up is a positive signal, marking the support level at around 1,680-1,690, as we can see on the 15-minute chart:

Thank you,
Paul Rejczak