US stock indexes enhanced losses and closed in the red yesterday, after oscillating during the trading session.
Today on the economic calendar we have from the US the ADP employment change in October that is expected to rise from 220K to 213K showing a rise in employment and a stronger labor market. Also we will have the Services PMI in October that is estimated to fall from 57.3 to 57.1 displaying that the US economy is still in the right track.
Usa500 fell but establish some support at 1,995 but close in the red at mid-daily range creating a hanging man pattern. The Index is in a bullish phase and stalling at a daily resistance. Monday we had a spinning top pattern, yesterday a hanging man pattern all signs of reversal and stochastic is showing a overbought market so we may expect a downward correction.
Expecting downward move to 1,979 on a break of below previous day low at 1,995 (scenario 1) or a bounce from the daily resistance at 2,014 could throw the Index to a daily support at 1,979.
Usa500 is a CFD written over S&P500 futures.