U.S. stock index futures are called slightly higher on Wednesday ahead of the release of the Federal Reserve’s Beige Book later today, but investors will remain focused on developments in European debt markets and jittery over European bank concerns.

There are no major U.S. economic reports this morning which may mean increased volatility early. Later in the day, the Federal Reserve releases its Beige Book. This report will offer assessments on different regions of the economy by the central bank’s member banks and is used by the Fed to determine interest rate policy at its regular meetings.

While not expected to have a major influence on the equity market’s direction today, it is likely to clarify the Fed’s recent decision to leave interest rates at historically low levels and the reasoning behind the Federal Open Market Committee’s decision to use the proceeds from its mortgage investments into Treasury Bonds.

Overnight, U.S. stocks followed European equity markets higher after Portugal had a successful bond sale. This positive development alleviated some of the concerns that arose over European banking system stability during Tuesday’s sell-off.

On Tuesday, the September E-mini S&P 500 posted a closing price reversal top which was confirmed overnight. This pattern suggests the start of a two to three day break with a minimum downside target of 1072.25. An uptrending Gann angle at 1077.00 is also a point to watch today as a test of this level may trigger a technical bounce if tested.

Look for a cautious, two-directional trade today as traders continue to deal with the futures contract roll-over and general concerns over European debt issues. President Obama is expected to talk more about his new spending plan. No one is certain what he will say, but generally speaking, the market seems to like it when the government pumps more taxpayer money into the economy.

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