Stocks retraced some of their recent advance on Wednesday, as investors took short-term profits off the table. The S&P 500 index fell below the 3,000 level and closed 1.1% below the Mondays new record high of 3,017.80. So is this a downward reversal or just a correction before another leg up?
The U.S. stock market indexes lost 0.4-0.7% on Wednesday, as investors took more short-term profits off the table following the recent record-breaking advance. The S&P 500 index reached the new record high of 3,017.80 on Monday. It gained around 290 points from its early June local low of 2,728.81. Yesterday it got back below the 3,000 mark. The Dow Jones Industrial Average lost 0.4% and the Nasdaq Composite lost 0.5% on Wednesday.
The nearest important resistance level of the S&P 500 index is now at 3,000, marked by the recent support level. The next resistance level is at around 3,015-3,020, marked by the record high. On the other hand, the support level is at 2,980-2,985, marked by last weeks Wednesdays daily gap up of 2.981.90-2,984.62. The next support level is at 2,965-2,970, marked by the early July local lows.
The broad stock market broke above its short-term consolidation recently and it broke above the 3,000 mark. Is this a real bullish breakout above the last years September-October topping pattern? The S&P 500 extended its half-year-long run-up:
S&P 500 Back Below 3,000 Mark
The index futures contracts trade 0.1-0.2% below their Wednesdays closing prices, so expectations before the opening of todays trading session are slightly negative. The European stock market indexes have been mixed so far. Investors will wait for some economic data announcements today: Philly Fed Manufacturing Index, Unemployment Claims at 8:30 a.m., CB Leading Index at 10:00 a.m. They will also wait for the quarterly corporate