The U.S. stock market indexes have opened down 0.3-0.5%, retreating after yesterday’s rather short-lived attempt to end the downward correction. Investors fear Washington’s fiscal battle, as it may cause some turmoil in the financial markets. The S&P 500 index currently loses 0.6%, moving away from the level of 1,700 and deepening its short-term downtrend. The nearest support remains at 1,688.73-1,691.70, marked by the September 16 daily gap up. The S&P500 futures contract (CFD) continues its downtrend, as it approaches a potential level of support at around 1,680, marked by the previous consolidation. The resistance remains at 1,700, as we can see on the 15-minute chart:

The Nasdaq 100 futures contract (CFD) remains somewhat stronger than broad market, represented by the S&P 500 index, as it continues to fluctuate above the level of 3,200. The resistance is at 3,230-3,240, marked by last week’s topping consolidation. For now, it looks like a flat correction of the month-long uptrend, as the 15-minute chart shows:

Thank you,
Paul Rejczak

PS. Please note that the above commentaries will be available free of charge only until Friday, Sep 27, 2013 and will become a premium product after this date.