Friday saw a strong rally in Wall Street to finish at the highs with the S&P 500 index closing up by 1.9%, owing much to some dovish commentary by Fed's Waller. He endorsed a 25 bps move for the next policy meeting and also said that "if markets are right about inflation", then that is "good news".
That's a big nod to how accepting they are of market movements and was enough to get risk trades pumped up. Despite the gains, the S&P 500 ran into key technical resistance once again and that is where we are left to start the new week:
It's pretty much the same old brand new story for US stocks. Price needs to clear the 200-day moving average (blue line) and the key trendline resistance (white line) from last year, in order to vindicate any further material upside momentum. And in my view, it would be preferable if dip buyers and equity bulls can take out the 4,100 mark.
S&P 500 futures are little changed today, down 4 points, or 0.1%, as we look towards European trading. But all eyes will be on the key levels above to gauge the market's appetite and to see if there is scope for a more bullish breakout this week.
