The major U.S. stock market indexes lost 0.4-07% yesterday amid mixed corporate earnings releases and renewed fears of Fed tapering. The S&P500 tested the lower limit of the recent consolidation once again, getting closer to a breakdown below the support level at 1,675-1,690, as the quarterly earnings release from Cisco Systems weighed negatively on the overall market sentiment after the close of business yesterday. For now, the S&P500 only extends its consolidation in the area of the May 22 local top of 1,687.18, as we can see on the daily chart:

Expectations before the opening of today’s session are negative, as the European stock market indexes have lost 0.4-1.0%. Investors will now wait for several economic data announcements: Consumer Price Index, Initial Claims and Empire Manufacturing Index at 8:30 a.m., Industrial Production data at 9:15 a.m., Philadelphia Fed Index at 10:00 a.m. The tech sector is ought to be relatively weaker this morning after yesterday’s after-hours Cisco Systems’ earnings release. However, the S&P500 futures contract (CFD) remains in the range of the recent consolidation, testing its lower limit at around 1,675-1,680. In the short-term there is still no visible direction, as the 15-minute chart shows:

Thank you,
Paul Rejczak