Stock market today: S&P 500 climbs as ongoing AI-led rebound pushes tech higher
End of month and unemployment report stock market catalysts
Pre-Open Market Analysis
Yesterday was an inside day and it therefore it is a signal bar for the bulls and bears. Because the past 3 days formed an ioi candlestick pattern, the S&P 500 Futures (Emini) is in breakout mode.
Yet, it is in a month-long tight trading range. Hence, that reduces the significance of breakout setups because it is a limit order environment. There are more likely sellers above and buyers below. Therefore, the Emini will probably be mostly sideways again tomorrow.
Because the daily chart is in a bull trend and holding above the moving average, the odds still favor at least one more new high. Yet, the stops are far below on the daily chart, and most of the buyers over the past 2 months were momentum bulls. Therefore bulls will probably take profits soon. When they do, the selloff could be quick because the momentum bulls will sell out as they try to avoid a loss.
Emini Globex session
The Emini is down 1 point in the Globex session. It traded in only a 4-point range overnight, and extended the trading range from yesterday. Hence, today could be a second consecutive inside day. This would be a sign of neutrality going into tomorrow, the last day of the month.
It is about 10 points away from the open of the month. It has therefore been unable to escape the gravitational pull of the open. Hence, it is still deciding whether the month will have a bull or bear body when it closes tomorrow.