The U.S. stock market indexes were mixed yesterday, despite the weekend news of Larry Summers dropping out of consideration for the head of the Federal Reserve. The S&P500 index managed to get close to the August all-time high of 1,709.67, reaching the daily high at 1,704.95. However, the daily closing price was at 1,697.6 (+0.6%), as the sellers prevailed in the end. The technology sector Nasdaq Composite index lost 0.1%, driven by the Apple weakness once again. Investors remain cautious ahead of the Fed policy change, as the latest polls show. The relatively weak market sentiment may support the bulls in the medium term. In case of the S&P500 index, the nearest important level of support is at 1,688.73-1,691.70, marked by yesterday’s daily gap up. On the other hand, the resistance level is at around 1,710, marked by the all-time high of 1,709.67, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, as the main European stock market indexes have lost 0.2-0.4%. Investors will now wait for some economic data announcements: Consumer Price Index, Housing Starts and Building Permits numbers at 8:30 a.m. The S&P500 futures contract (CFD) bounced off the psychological resistance at around 1,700 and fluctuates a little above the recent upward trend line, as the 15-minute chart shows:

Thank you,
Paul Rejczak