The U.S. stock market indexes were mixed between -0.2% and +0.1% vs. their Tuesday’s closing prices yesterday, as investors continued to hesitate following the recent fluctuations. The S&P 500 index has reached the record high of 2,916.50 on August the 29th. It currently trades 0.9% below that high. The Dow Jones Industrial Average gained 0.1% and the technology Nasdaq Composite lost 0.2% on Wednesday.
The nearest important level of support of the S&P 500 index remains at around 2,860-2,865, marked by the recent fluctuations. The support level is also at 2,830-2,835. On the other hand, the nearest important level of resistance is at 2,885-2,890, marked by the previous support level and the recent local highs, among others. The next resistance level is at 2,900. The resistance level is also at 2,910-2,915, marked by the mentioned late August record high.
The broad stock market reached the new record high in the late August, as it extended its short-term uptrend above the level of 2,900. Since then it trades within a correction. The market retraced its late August advance, and it got back down to the support level of its late January high. Will it continue lower or reverse higher towards the all-time high? For now, it looks like a correction within an uptrend. The index continues to trade above its medium-term upward trend line, as we can see on the daily chart:
More Sideways Price Action
The expectations before the opening of today’s trading session are slightly positive, because the index futures contracts trade 0.2-0.3% higher vs. their Wednesday’s closing prices. The European stock market indexes have been mixed so far. Investors will wait for some economic data announcements today: Consumer Price Index, Initial Claims at 8:30 a.m. The broad stock market will probably extend its short-term fluctuations. There is no clear short-term direction. So which direction is next? For now, it looks like a relatively flat correction within a few-months-long uptrend. There have been no confirmed negative medium-term signals so far.
