The U.S. stock market indexes were mixed yesterday, as investors took profits after Wednesday’s move up, following the Fed’s decision not to taper its bond purchases program. The S&P500 index managed to reach another all-time high of 1,729.86, however, the daily change was slightly negative (-0.2%). The level of support is at around 1,710, marked by the early August high. The next support is at 1,688.73-1,691.70, marked by Monday’s daily gap up. On the other hand, we can see some selling pressure at around 1,730. There are no confirmed uptrend reversal signals, however, the market seems to be a little overbought and prone to profit-taking at these levels, as the daily chart shows:

Expectations before the opening of today’s session are virtually flat, as the main European stock markets have lost 0.1-0.2%. With no important economic data announcements, we may witness some further short-term fluctuations. However, volatility may increase due to expiration of derivatives, known as the “triple-witching hour”, which occasionally increases price volatility of related securities. The S&P500 futures contract (CFD) fluctuates in the area of 1,715-1,725. The price is still above its recent upward trend line, as we can see on the 15-minute chart:

Thank you,
Paul Rejczak