The main U.S. stock market indexes were mixed yesterday as investors hesitated after last week’s drop. By the end of trading, the Dow Jones Industrial Average was flat, the S&P500 gained 0.4% and the Nasdaq Composite was 0.7% higher. The S&P500 index fluctuates around the level of 1,650, still above the June-August uptrend’s 50% retracement at 1,635.00. The nearest important level of support is at 1,635-1,650 and the potential resistance level is at 1,679.61-1,684.83, marked by the August 15 gap down, as we can see on the daily chart:

Expectations before the opening of today’s session are quite negative with index futures losing 0.3-0.4% right now as the European stock market indexes have lost 0.1-0.9%. Investors will now wait for the Existing Home Sales numbers at 10:00 a.m. and the FOMC Minutes at 2:00 p.m. The latter typically move markets on release. In case of the S&P500 futures contract (CFD), the level of support is at 1,640-1,650, marked by some of the earlier support and resistance levels. The market is consolidating after the recent move down, still with no clear short-term trend reversal signal as the 15-minute chart shows:

Thank you,
Paul Rejczak