The U.S. stock market indexes gained 0.2-0.6% on Wednesday, slightly extending their short-term uptrend once again, as investors’ sentiment remained bullish following the recent rally. The retraced more of its October-December downward correction of 20.2%. The broad stock market’s gauge is now just 2.3% below September the 21st record high of 2,940.91. The gained 0.2% and the gained 0.6% on Wednesday.
The nearest important resistance level of the S&P 500 index remains at 2,890-2,900, marked by some early October local highs. The next resistance level is at 2,920-2,940, marked by the mentioned record high, among others. On the other hand, the support level is now at 2,860-2,865, marked by some recent local lows. The next support level remains at 2,835-2,845, marked by the Monday’s daily gap up of 2,836.03-2,848.63.
The broad stock market retraced all of its December sell-off and it broke above the medium-term resistance level of around 2,800-2,820, marked by the October-November local highs recently. So is it still just a correction or a new medium-term uptrend? The market broke above the 61.8% Fibonacci retracement of the 20% decline. And we may see an attempt at getting back to the record high. There have been no confirmed negative medium-term signals so far. The index gets closer to its last October all-time high, as we can see on the daily chart:
Mixed Expectations Following Recent Rally
Expectations before the opening of today’s trading session are virtually flat because the index futures contracts trade between -0.1% and 0.0% vs. their yesterday’s closing prices. The European stock market indexes have been mixed so far. Investors will wait for the Unemployment Claims number announcement at 8:30 a.m. They will also wait for tomorrow’s monthly jobs data release. The broad stock market will likely fluctuate following its recent