The U.S. stock market indexes gained 0.3-0.7% on Friday, extending their short-term rebound. For now, it only looks like a correction within the recent downtrend, with the broad market S&P500 index bouncing off the support level of 1,635.00 marked by the 50% retracement of the June-August uptrend. The nearest important resistance level is at the August 15 daily gap down at 1,679.61-1,684.83, and the support level is at around 1,635-1,650 marked by some of the June-August uptrend’s retracements, as the daily chart shows:

Expectations before the opening of today’s session are slightly negative, as the main European stock market indexes have lost 0.3-0.6%. Investors will now wait for the Durable Orders data announcement at 8:30 a.m. The S&P500 futures contract (CFD) is testing the resistance level at around 1,665 marked by some of the July uptrend’s lows. It is difficult to say whether this is only a correction of the recent downtrend or a start of a new bull market leg. The CFD is still below the short-term downward trend line currently marking the resistance level at around 1,670, as we can see on the 15-minute chart:

Thank you,
Paul Rejczak