The main U.S. stock market indexes were mixed yesterday, with the technology sector, represented by the Nasdaq Composite index, relatively weaker (-0.6%), as investors awaited Apple Inc.’s quarterly earnings release. Apple’s earnings came in better than expected after the bell, improving the market sentiment. The broad market S&P500 index managed to reach another all-time high of 1,698.78 yesterday, but failed to sustain that optimism as investors took profits later in the day. The nearest psychological resistance level is at around 1,700. There are no confirmed sell signals, however, one can see the so-called bearish engulfing pattern on the daily chart (a pattern that consists of a white candlestick followed by a black candlestick that “engulfs” the white one):

Expectations before the opening of today’s session are positive, as the market reacts to the above-mentioned earnings release. The major European stock markets have gained 0.5-0.9%, driven by some better-than-expected economic data announcements this morning. The S&P500 futures contract (CFD) is in the short-term consolidation, maintaining relatively low volatility. The month-long uptrend proceeds virtually without any correction, despite growing concerns amongst investors. In case of a correction, the potential support level is at around 1,665-1,675, marked by the mid-month consolidation’s boundaries, as the 15-minute chart shows:

Thank you,
Paul Rejczak