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S&P 500 soars to record highs as geopolitical risks ease; focus shifts to US CPI data
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FUNDAMENTAL OVERVIEWThe S&P 500 has finally broken out of the range and extended the gains into new record highs following positive US-Iran developments.
The gains started to get trimmed late yesterday probably because the anticipated timeline for the deal passed without an announcement.
A soft report, on the other hand, should reduce further the risk of Fed tightening and give the S&P 500 another boost.
S&P 500 TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see the S&P 500 broke above the 7,640 resistance and extended the gains into the 7,800 level before pulling back a bit.
S&P 500 TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have an upward trendline defining the bullish momentum.