More Short-Term Uncertainty As Investors Await Economic Data Releases

The U.S. stock market indexes were mixed between -0.3% and +0.1% on Wednesday, as investors hesitated following the recent advances. The S&P 500 index retraced more of its October-December downward correction of 20.2% on Monday. It got closer to the previous local highs along the 2,800 level. The Dow Jones Industrial Average lost 0.3% and the Nasdaq Composite gained 0.1% yesterday.

The nearest important resistance level of the S&P 500 index remains at around 2,800-2,820, marked by the previous medium-term local highs. On the other hand, the support level is now at around 2,765-2,780, marked by the recent local lows. The support level is also at the previous Friday's daily gap up of 2,757.90-2,760.24.

The broad stock market retraced all of its December sell-off and it got close to the medium-term resistance level of around 2,800, marked by the October-November local highs. 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 highs. But will the index break above the mentioned previous local highs? There have been no confirmed negative signals so far:

Daily S&P 500 index chart - SPX, Large Cap Index

Short-Term Consolidation

Expectations before the opening of today's trading session are negative because the index futures contracts trade 0.2-0.4% below vs. their Wednesday's closing prices. The European stock market indexes have been mixed so far. Investors will wait for some economic data announcements: Advance GDP number, Initial Claims at 8:30 a.m., Chicago PMI at 9:45 a.m. The broad stock market will likely extend its short-term consolidation It may fluctuate along the level of 2,800.

The S&P 500 futures contract trades within an intraday consolidation following yesterday's decline. The nearest important resistance level is at around 2,795-2,800, marked by the short-term local highs. On the other hand, the support level remains at 2,775-2,780. The futures contract is close to the three-day-long downward trend line, as the 15-minute chart shows:

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Disclosure: None.

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