The U.S. stock market indexes lost 0.1-0.4% yesterday, as investors continued to take profits after the recent rally. However, the market recovered earlier losses, ending the day only slightly lower. The S&P500 index deepened its correction, going back to the late July consolidation range which is a potential level of support at around 1,675-1,690. The S&P500 has lately lacked a clear direction as investors weigh the quarterly earnings releases, economic data announcements and prospects of the Fed tapering off QE program. For now, the index just fluctuates around the level of 1,700, as the daily chart shows:

Expectations before the opening of today’s session are slightly positive, as the main European stock market indexes have gained 0.3-0.4%. The S&P500 futures contract (CFD) bounced off the support level of 1,680, marked by the lower limit of the recent consolidation. The price fluctuates under the resistance at the 1,700-1,705 area. It’s been almost a month now since the market reached the vicinity of 1,700 for the first time. Since that moment, there has been no clear trend on the 15-minute time frame, as we can see on the chart:

Thank you,
Paul Rejczak