SP500 futures – positive opening
Xi-Trump agreements on all headlines and world woke up witnessing huge opening across Asian markets. Risk-on mood is on top gear and spilled over to European trading. Trade war ceasefire between US and China is announced and this is all what markets needed, at least for now. Though there were concerns regarding different post-agreement statements from the two countries, yet it did not spoiled the mood.
We will need to watch how things will develop over the European and later in US session. As of now, technical picture looks like price charts are overstretched on H1 timeframe and although the inertia is massive, the retreat is also likely.
Is this rally sustainable ? The agenda is back to Powell again and market will closely watch his statements this week. If dovish tone is maintained, this will boost markets even further.
As of today, main question for me is to watch the resistance level around 2820.
It is a strong level on H4 chart and I expect it to be tested very soon. Those who would like to join this rally, may chose to wait for the retreat from this area and buy on declines, especially around 2770.
Price line on different timeframes are overstretched and I am cautious to enter longs at these levels, rather prefer to wait for the better price.
Have a nice week ahead !