The U.S. stock market indexes lost 0.3-0.4% yesterday, slightly extending their recent downtrend as investors worried about debt-ceiling crisis and a possible Federal Reserve policy change. The S&P 500 index trades below the psychological level of 1,700, approaching a possible support level at around 1,690, marked by the May top of 1,687.18, as well as the July-August consolidation’s lower limit. For now, it only looks like a correction within an uptrend, however, a bearish scenario of the five-month long rising wedge pattern cannot be excluded here. The nearest important support is at 1,688.73-1,691.70, marked by the September 16 daily gap up, as we can see on the daily chart:

Expectations before the opening of today’s session are slightly positive, with index futures gaining 0.1-0.3% currently, however, the main European stock market indexes have lost 0.2-0.5%. Investors will now wait for some economic data announcements: Initial Claims and U.S. GDP numbers at 8:30 a.m., Pending Home Sales report at 10:00 a.m. The S&P 500 futures contract (CFD) is in a short-term consolidation, fluctuating around the level of 1,690. The nearest resistance is at 1,700, marked by some of the recent highs, as the 15-minute chart shows:

Thank you,
Paul Rejczak

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