The main U.S. stock market indexes lost 0.2-0.4% yesterday, as investors continued to take profits after the recent run-up following last week’s Fed decision not to taper its bond purchasing program yet. Actually, the S&P500 retraced all of its recent gains, going down to a potential level of support at around 1,700. The resistance remains at 1,729.86, marked by the September 19 all-time high. The market is in the July-August consolidation zone, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, as the European stock markets have gained 0.1-0.5%, following economic data announcements from Germany. Investors will now wait for some U.S. economic releases: Case-Shiller 20-city Index at 9:00 a.m. and the Consumer Confidence index for the month of September at 10:00 a.m. The S&P500 futures contract (CFD) trades below the recent upward trend line, as the market is in a short-term downtrend. The nearest important level of support is at around 1,690, marked by last week’s consolidation. On the other hand, the resistance is at 1,700, as the 15-minute chart shows:

Thank you,
Paul Rejczak