The U.S. stock market indexes were mixed between -1.2% and +0.1% on Wednesday, as investors hesitated following the recent record-breaking rally.The S&P 500 index has reached the record high of 2,916.50 last week. It currently trades below 2,900 mark. The Dow Jones Industrial Average gained 0.1% and the technology Nasdaq Composite lost 1.2% yesterday.
The nearest important level of support of the S&P 500 index is at 2,875-2,885, marked by last week’s Monday’s daily gap up of 2,876.16-2,884.69 and yesterday’s daily low of around 2,877. The support level is also at 2,860-2,865. On the other hand, the nearest important level of resistance is at 2,900. The next resistance level is at 2,910-2,915, marked by the mentioned last Wednesday’s record high.
The broad stock market reached the new record high last week, as it extended its short-term uptrend above the level of 2,900. We may see more upward price action in the near term, but a downward correction may be coming. The market has retraced its late January – early February downward correction recently. So will it continue towards 3,000 mark? The index still trades above its medium-term upward trend line, as we can see on the daily chart:
Flat Expectations
The index futures contracts trade between -0.1% and +0.1% vs. their Wednesday’s closing prices. So, expectations before the opening of today’s trading session are virtually flat. The European stock market indexes have been mixed so far. Investors will wait for some economic data announcements: Initial Claims, Productivity at 8:30 a.m., ISM Services, Factory Orders at 10:00 a.m., Crude Oil Inventories number at 11:00 a.m. The broad stock market will probably extend its short-term consolidation, as the index may remain close to 2,900 mark and trade above the mentioned last week’s Monday’s daily gap up. There have been no confirmed negative signals so far. However, we can see technical overbought conditions.
