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US stocks look to rise into the weekend

Summary:

  • All US indices in the green in final session of the week, month and quarter
  • US500 holds rising trendline 
  • Favourable seasonality effects could provide boost next week

It looks like being a good end to the week for stock market bulls with a sea of green across major indices. Looking at American markets, the only index in the red is VOLX, and seeing as this is the volatility index for US stocks, its decline is also a good sight for equity longs. The US100 is leading the way higher, gaining over 1.3% at the time of writing but there are notable gains everywhere even in the US2000 which is acting as something of a laggard.

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 Indices in America are on the rise with the US100 leading the way higher. Source: xStation

Looking at the US500 specifically, the market held a potentially key level earlier this week, when the decline was halted by the testing of a rising trendline. The rising channel that has contained price now looks set to continue to do so with overhead resistance possible around 2805 should price rally further. 

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 The US500 held the trendline and remains in a rising channel. Source: xStation

 Looking at seasonality factors there’s an interesting observation to be had here in that the 2nd July has been the best performing day for the S&P500 since the new millennium. There have only been 3 time since 2000 when the market has dropped on the 2nd July with 83.33% of the time the market rising. The average move on the day is a gain of 0.35%.

 There’s been little out this afternoon in terms of market moving data for US stocks in general, with the earlier PCE core release seeing minimal reaction. Since then we’ve had the University of Michigan consumer sentiment which dropped more than expected (98.2 vs 99.1 exp and 99.3 prior)and the Chicago PMI which rose to a 5-month high of 64.1 (60.1 exp and 62.7 prior.)

 

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