The main U.S. stock market indexes gained between 0.6% and 0.7% on Friday, as investors welcomed a temporary resolution for the debt crisis: a new debt-ceiling deadline. Investors also hoped for solid third-quarter earnings releases. The S&P 500 index gained 0.6%, moving above the level of 1,700. The nearest important resistance is at 1,700-1,710. On the other hand, the support is at around 1,670-1,690, marked by the previous consolidation. The index broke above September-October downward trend line, which is a positive signal, as it may form another bullish flag-type pattern, as we can see on the daily chart:

Expectations before the opening of today’s session are negative, with index futures currently down between 0.4% and 0.6%. Once again, the debt-ceiling talks seem to be failing. Therefore, market sentiment worsens slightly. The European stock market indexes have been mixed so far. The S&P 500 futures contract (CFD) approached the level of 1,700 on Friday, but we can see a retreat today. The nearest support is at around 1,680, marked by the recent short-term lows. For now, it looks like a consolidation following last week’s quick move up, as the 15-minute chart shows:

The above analysis is the first of today's 4+ Stock Trading Alerts. Our subscribers receive also at least 2 Stock Trading Alerts during the session and one right after the session ends. Stay as updated as possible on the current events and trends on the stock market by choosing our Stock Trading Alert subscription service.

Thank you,
Paul Rejczak