The U.S. stock market indexes gained 2.3-3.0% on Wednesday, as investors sentiment much improved following breaking out above the recent trading range. The got back above the level of 2,700. It currently trades 6.7% below September the 21st record high of 2,940.91. The gained 2.5% and the gained 3.0% on Wednesday.
The nearest important level of resistance of the S&P 500 index is now at 2,750, marked by some previous local highs. The resistance level is also at 2,780-2,800, among others. On the other hand, the level of support is at 2,680-2,700, marked by the recent resistance level.
The broad stock market got closer to its late October low recently. The S&P 500 index traded more than 10% below the record high. It was a bottoming pattern before an upward reversal. The market is now at the long-term upward trend line again. So will the short-term uptrend continue? For now, it looks like a two-month-long consolidation following the October rout:
Relative Streght Index
Negative Expectations, Just Correction?
Expectations before the opening of today’s trading session are negative, because the index futures contracts trade 0.2-0.5% below their Wednesday’s closing prices. The European stock market indexes have gained 0.2-0.6% so far. Investors will wait for another series of economic data announcements today: , , at 8:30 a.m., at 10:00 a.m., the release at 2:00 p.m. The broad stock market will likely retrace some of its yesterday’s rally today. We can see some short-term overbought conditions. However, there have been no confirmed negative signals so far.
The contract trades within an intraday downtrend, as it retraces some of its yesterday’s advance. The market bounced off the resistance level of around 2,740-2,750. The nearest important support level is now at 2,700-2,720. The futures contract trades at its previous local high, as