Monday was another good day for the buyers on Wall Street as the major U.S. stock market indexes gained 0.1-0.6%. The market continues its short-term upward march, with the S&P500 index breaking above the May-June correction trend line and penetrating important retracement levels of its previous decline. The bullish scenario assumes a return to the May 22 all-time high at 1,687.18 and the continuation of a secular bull market, but further fluctuations around the level of 1,600 cannot be excluded. Especially if the index remains below the previously broken November-May upward trend line, as we can see on the daily chart:

Much will depend on the market’s reaction to the quarterly earnings releases and future economic data announcements. The data can affect the Fed’s decisions concerning possible ending of its “Quantitative Easing” program, thus having a major impact on the stock market. The U.S. stock index futures point to a higher open of the cash market now, as the main European stock market indexes are up 1%. However, the session may bring some short-term fluctuations because the S&P500 futures contract (CFD) is testing the resistance zone at 1,640-1,650 (the early June consolidation’s upper boundary), as we can see on the 15-minute chart:

Thank you
Paul Rejczak