S&P 500 Remains Below 2,900 Mark, Will Downtrend Continue?

The U.S. stock market indexes were mixed between -0.3% and 0.0% on Wednesday, as investors hesitated following Tuesday's sell-off. The S&P 500 index retraced its April's advance. It currently trades 2.5% below its May the 1st record high of 2,954.13. The Dow Jones Industrial Average was unchanged and the Nasdaq Composite lost 0.3% on Wednesday.

The nearest important resistance level of the S&P 500 index remains at 2,890-2,900, marked by the recent support level. The resistance level is also at 2,920. On the other hand, the support level is at 2,860-2,865. The support level is also at around 2,835-2,850, marked by April the 1st 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 last year's high recently. But on Tuesday the index broke below the short-term consolidation and it retraced all of the April's advance. The market also broke below its two-month-long upward trend line, as we can see on the daily chart:

 

Negative Expectations Again, S&P 500 Futures at New Low

Expectations before the opening of today's trading session are negative because the index futures contracts trade 0.6-0.8% below their Wednesday's closing prices. The European stock market indexes have lost 0.3-1.1% so far. Investors will wait for some economic data announcements today: Producer Price Index, Trade Balance, Unemployment Claims at 8:30 a.m., Wholesale Inventories at 10:00 a.m. There will also be a speech from the Fed Chair Powell at 8:30 a.m.

The broad stock market will likely extend its short-term fluctuations along the local lows today. For now, it looks like a downward correction. The index broke below the support level of around 2,890-2,900 on Tuesday, and then we saw more selling pressure. Will the market break below the relatively important support level of 2,850? There have been no confirmed positive signals so far.

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