US financial markets are closed today in observance of Independence Day. Investor optimism was fuelled by the S&P 500 index (US SPX 500 mini on FXOpen), which climbed to a fresh record high yesterday, surpassing 6,280.
The rally was underpinned by stronger-than-expected US labour market data. Analysts polled by ForexFactory had forecast an uptick in unemployment from 4.2% to 4.3%, but instead, the rate fell to 4.1%, surprising markets.
Will this momentum continue?
Technical Analysis: S&P 500
On the 4-hour chart of the S&P 500 (US SPX 500 mini on FXOpen) as of 30 June:
- An ascending channel (highlighted in blue) was established.
- A bullish impulse (orange line) suggested a move towards the channel’s upper boundary — a scenario confirmed by yesterday’s surge (arrow 1).
However, the subsequent pullback (arrow 2) has become noteworthy. It indicates that sellers are stepping in near resistance.
If the index retreats towards the lower orange line, this could invalidate the recent bullish impulse and form a classic bearish engulfing pattern.
Overall, there are signs that bears are attempting to regain control after a 5% rally over the past 10 days. A potential break below the orange trendline remains a risk, which could see the price moving towards the midpoint of the blue channel.
Outlook
What happens next will largely depend on developments around US trade policy. With key White House tariff deadlines approaching, traders should prepare for renewed volatility in the coming week.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer: This sponsored market analysis is provided for informational purposes only. We have not independently verified its content and do not bear any responsibility for any information or description of services that it may contain. Information contained in this post is not advice nor a recommendation and thus should not be treated as such. We strongly recommend that you seek independent financial advice from a qualified and regulated professional, before participating or investing in any financial activities or services. Please also read and review our full disclaimer.
