The main U.S. stock market indexes lost 0.8-0.9% yesterday, as investors feared Washington’s debt crisis, neglecting the upcoming quarterly earnings season. The S&P 500 index remains near its level of support at 1,678.67, marked by 50% retracement of the September advance. The nearest important resistance is at 1,700-1,710. For now, it looks like a flat correction of the recent downtrend, which favors the bearish scenario. Practically, since the beginning of the month the market goes sideways, as the daily chart shows:

Expectations before the opening of today’s session are virtually flat, as the European stock market indexes have lost between 0.2% and 0.5%. Investors will now wait for the U.S. Trade Balance announcement at 8:30 a.m., however, this data release is likely to have limited impact on the stock market. The S&P 500 futures contract (CFD) trades near its recent lows, with the support level at around 1,665. Still with no clear direction, as the price remains in the short-term consolidation. The resistance is at 1,685-1,690, marked by some of the recent highs. There are no confirmed downtrend reversal signals, as we can see on the 15-minute chart:

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Thank you,
Paul Rejczak