The major U.S. stock market indexes were virtually flat yesterday as investors awaited today’s unemployment data release. The S&P500 index managed to close in the area of the August 27 daily gap down at 1,652.54-1,656.02 once again, extending its short-term consolidation. The market bounced off the resistance level at around 1,635, marked by the June-August uptrend’s 50% retracement as investors hoped for the end of a month-long correction, however, there are no confirmed trend reversal signals, except for a potential bull-flag formation, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, as the main European stock market indexes have been mixed. Investors will now wait for the economic data announcements: Nonfarm Payrolls and the Unemployment Rate for the month of August, to be released at 8:30 a.m. The S&P500 futures contract (CFD) continues to fluctuate in a rather tight range, near the resistance level at around 1,655 marked by the month-long downward trend line. Investors are in a “wait-and-see” mode, ahead of important data releases today. The nearest short-term resistance level is at 1,650, as the 15-minute chart shows:

Thank you,
Paul Rejczak