New Record Highs Ahead?

The U.S. stock market indexes were mixed between -0.1% and +0.6% on Wednesday, extending their short-term fluctuations, as investors’ sentiment remained unchanged. The S&P 500 index has reached the record high of 2,916.50 on August the 29th. It currently trades just 0.5% below that high. The Dow Jones Industrial Average gained 0.6% and the technology Nasdaq Composite lost 0.1% yesterday.

The nearest important level of support of the S&P 500 index remains at 2,900. The next support levelis at around 2,880, marked by the recent local low. The support level is also at around 2,860-2,865. On the other hand, the nearest important level of resistance is now at 2,910-2,915, marked by the mentioned record high.

The broad stock market reached the new record high in the late August, as it extended its short-term uptrend above the level of 2,900. Since then it trades within a consolidation. On Tuesday, it got back above 2,900 mark again. Will it advance towards new all-time highs? Or is this some medium-term topping pattern? The index trades above its three-month-long upward trend line, as we can see on the daily chart:

Still Close to Record High

The index futures contracts trade 0.1% higher vs. their Wednesday’s closing prices. So expectations before the opening of today’s trading session are virtually flat again. The European stock market indexes have gained 0.2-0.7% so far. Investors will wait for some economic data announcements this morning: Philadelphia Fed Manufacturing Index, Initial Claims at 8:30 a.m., Leading Indicators, Existing Home Sales at 10:00 a.m. The broad stock market may continue to fluctuate within a short-term consolidation along the level of 2,900. For now, it looks like another relatively flat correction within a medium-term uptrend. There have been no confirmed negative signals so far.

The S&P 500 futures contract trades within an intraday consolidation, as it remains close to its record high. The nearest important level of resistance is at around 2,917-2,920. On the other hand, support level is at 2,900-2,905, marked by the recent local low. The level of support is also at around 2,880-2,890. The futures contract trades along its record high, as the 15-minute chart shows: