The major U.S. stock market indexes gained 0.8-1.3% yesterday, reaching new all-time highs as investors assumed that easy monetary policy will continue. For the first time ever, the S&P500 index crossed the level of 1,700. The market broke out above the recent consolidation, moving further away from the May 22 local top of 1,687.18. So, the beginning of the month is very good for the bulls on Wall Street. The broad market index continues its long-term uptrend, as we can see on the daily chart:

Investors will wait for the key U.S. economic data announcements now: Nonfarm Payrolls and Unemployment Rate for the month of July at 8:30, amongst others. Expectations before the opening of today’s session are slightly positive as the main European stock markets have gained 0.1%, but most will depend on reaction to the above-mentioned labor market announcements. Especially since the expectations are quite high after Wednesday’s better-than expected ADP Employment Change report. The S&P500 futures contract (CFD) continues its short-term uptrend, analogously crossing the psychological barrier of 1,700. The nearest support level is at around 1,690, marked by the recent consolidation’s upper boundary, as the 15-minute chart shows:

Thank you,
Paul Rejczak