📉US500 undecided ahead of the UoM data

🗓UoM consumer confidence index will be published today, which surprised the markets very negatively a month ago. Will today's reading lead to increased volatility?

Volatility ahead of the Wall Street session is very limited. In fact, the declines do not exceed 0.1%, although in the afternoon we saw a clear retraction on the European indices, which was followed by American contracts. However, much of the downward move has been erased. Despite the fact that volatility has been low so far, however the rest of the day looks interesting. First, the UoM consumer confidence index will be published at 3:00 PM BST. In August the reading surprised negatively, falling to 70.3 points, the lowest level since 2011. Now a very slight rebound to 72 points is expected. Before the pandemic, readings often exceeded 95-100 points.

The second factor that can move the markets today is the so-called quadruple witching day in the US. Always in the last month of a quarter, on the third Friday of the month, futures contracts on stocks, indices, options, etc. expire which often increase volatility, especially in the last trading hour.

US500 swings between gains and losses during today's session. If sellers will manage to gain control then breaking below the 50 SMA may occur. On the other hand, the area around the 38.2 Fibonacci retracement acted as a key resistance recently. Source: xStation5