Indexes fall on Syria Fears

The main U.S. stock market indexes lost 1.1-2.0% yesterday amid fears of a possible U.S. military strike against Syria. Additionally, the sell-off in stocks was accompanied by a surge in oil and gold prices, which shows an increase in anxiety among financial markets. The broad market S&P500 index extended its June-August uptrend’s correction, breaking below the uptrend’s 50% retracement at 1,635.00. The next possible support level is at 1,617.38, marked by the Fibonacci retracement of 61.8%. The nearest level of resistance is at 1,652.54-1,656.02, marked by yesterday’s daily gap down. The S&P500 index has been in a downtrend for the whole month of August, as we can see on the daily chart:

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

Expectations before the opening of today’s session are slightly positive as investors hope for a rebound. Major European stock markets have been mixed, following yesterday’s sell-off. Rising tensions over Syria continue to be the main driver for the financial markets at the moment. The S&P500 futures contract (CFD) continues its downtrend, breaking below last week’s local bottom at around 1,630. The nearest level of resistance is at 1,640-1,650. Still with no clear downtrend reversal signs, well below the month-long downward trend line, as the 15-minute chart shows:

S&P500 futures contract - S&P 500 Index chart - SPX, Large Cap Index

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