The main U.S. stock market indexes were mixed yesterday, as investors hesitated to take positions after last week’s run-up to new all-time highs and subsequent downward correction. There is a growing fear among traders about the debt-ceiling crisis, as well as the Fed’s plan to taper its stimulus program. The S&P 500 index closed slightly below the psychological level of 1,700 yesterday, extending its downward correction from the September 19 all-time high of 1,729.86. The nearest support is at around 1,690, marked by the July-August consolidation, as we can see on the daily chart:

Expectations before the opening of today’s session are virtually flat, as the major European stock market indexes have lost 0.2-0.3%. Investors will now wait for some economic data announcements: Durable Orders at 8:30 a.m. and the New Home Sales at 10:00 a.m. The S&P 500 futures contract (CFD) continues to trade below its recent upward trend line, testing the level of support at around 1,690, marked by last week’s short-term consolidation. The volatility remains relatively low, as the 15-minute chart shows:

Thank you,
Paul Rejczak

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