The U.S. stock market indexes lost 0.2-0.6% on Friday, as investors feared that the possibility of a military intervention in Syria could become a reality. However, President Obama’s August 31 statement on Syria has improved the market sentiment. The main indexes may bounce off the recent consolidation’s lower limit. The S&P500 index fluctuates around the June-August uptrend’s 50% retracement at 1,635.00. The support level is at 1,617.38, marked by the uptrend’s 61.8% retracement (the Fibonacci golden ratio). The nearest important resistance level is at 1,652.54-1,656.02, marked by last Tuesday’s daily gap down. Still, we have no confirmed trend reversal signals. The index extends its short-term consolidation, as we can see on the daily chart:
The index futures have gained 0.7-1.0% so far, following President Obama’s weekend speech The European stock market indexes have gained 1.4-1.7%. The S&P500 futures contract (CFD) bounced off the resistance level at around 1,625-1,630, marked by the recent local bottoms. The potential level of resistance is at around 1,660-1,665, marked by a month-long downward trend line and the recent local tops, as the 15-minute chart shows:
Thank you,
Paul Rejczak