On analysis of the movements of S&P 500 Futures, in different time frames, since I wrote my last analysis, I find that the currently visible rally in U.S. equities is based on hopes to find a vaccine and reopening economies.
The same bullish sentiments were seen in Asian markets on May 26th, 200, when the equity markets at the opening session; but by closing, most of the Asian markets tended to lose gains; as the growing tension between the U.S. and China still seems to be a major hurdle in global supply chain disruption.
On the other hand, steady Gold futures look evident enough to reflect the growing uncertainty in global equity markets. I find that hope-based rallies attract more bears to sell.
Finally, S&P 500 futures have been trying to sustain inside a bearish area, between the level of 3007 – 3124; while the bears will remain aggressive above 200 DMA. ES has been facing stiff resistance above the 200 DMA, which is currently at 3007.
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