US equities ended last week with solid gains ahead of what turned out to be a turbulent G7 summit. President Donald Trump has fired off a string of angry tweets criticizing Canada and the EU over trade adding that “Fair trade is now to be called fool trade”. Attention will now turn to the historic talks between the Trump and Kim Jong Un in Singapore with headlines likely to induce market volatility over the coming days.
Facebook (NASDAQ:FB) stock will react to new data-sharing revelations regarding specials deals with companies that granted access to user data well past 2015 when they claimed that third party developers were barred from access. Also this week, video game makers such as Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI) will be in focus as The Electronic Entertainment Expo kicks off.
S&P 500
On the daily chart, the S&P500 (SPX) has continued to make gains after breaking 2760. The index is now approaching a major zone of resistance between 2785-2800. A break of 2800 is needed for a continuation towards 2820 and then new all time highs. Any retracement will find support 2760 and then 2740.
On the daily chart, the NASDAQ 100 (NDX) broke to new all time highs last week. The index is now trading in a potential ascending wedge and if broken could lead to a correction. A break 7100 could open the door to a move lower to support at 7000 followed by 6870. However, as long as 7100 holds, another test of high at 7228 is possible and a break should see the index push towards the Fibonacci extension at 7340.
