The main U.S. stock market indexes were mixed yesterday, with technology stocks relatively stronger, as the Nasdaq Composite index gained 0.5%, reaching a new high of 3,629.12 (however, still well below the peak of 5,132.52 reached back in 2000). The broad market S&P500 index extends its short-term consolidation now, fluctuating just below the July 23 all-time high of 1,698.78. The nearest resistance level is at around 1,700 and the support level is at 1,675-1,680, marked by the recent local bottoms, as we can see on the daily chart:

Investors will wait for U.S. economic data announcements now: ADP Employment Change at 8:15 a.m., GDP at 8:30 a.m. and Chicago PMI at 9:45 a.m. There will also be the Federal Reserve policy decision later in the day (at 2:00 p.m.). Expectations before the opening of today’s session are slightly positive, as the major European stock market indexes have gained 0.2-0.6%. The S&P500 futures contract (CFD) remains in a rather tight range, extending its short-term consolidation. It still looks like a correction within the latest leg of the uptrend. The support level is at around 1,670-1,675, marked by the recent local bottoms, just like the cash market. The 15-minute CFD chart shows no clear direction:

Thank you,
Paul Rejczak