The U.S. stock market indexes closed virtually flat after volatile trade on Friday as investors reacted to the weaker-than-expected Nonfarm Payrolls report release for the month of August. The S&P500 index increased its daily trading range considerably without a decisive move in either direction. The August 27 daily gap down of 1,679.61-1,684.83 still seems to be the nearest important level of resistance for the market. On the other side, the support level is at around 1,635, marked by the June-August uptrend’s 50% retracement. The S&P500 broke above the August downtrend line, which is a positive sign since the market may form another bull-flag pattern, as we can see on the daily chart:

Expectations before the opening of today’s session are positive as the index futures gain 0.2-0.4%. The European stock market indexes have been mixed so far. With no important economic data releases today, the market may extend its short-term consolidation. The S&P500 futures contract (CFD) broke above the analogous month-long downtrend line, extending its fluctuations in the area of 1,660. However, Friday’s data announcements caused some volatile action. The nearest important support is at 1,640-1,650, as the 15-minute chart shows:

Thank you,
Paul Rejczak