Stocks came out swinging this week, with the S&P 500 futures contract posting a nearly 4% week-to-date gain largely on the back of Monday’s 3%-plus surge. Although the /ES recently has seen many breakneck price swings both up and down this year, more recently it has been unable to make a major move out from the range between 2760 and 2970, in which it has bounced around for the past few weeks. Yesterday seemed as though it could be promising for bulls, as the contract finished the day with the highest close since Apr. 29 and a push above the 252-EMA near 2932. Momentum also looked to be picking up with the MACD inching back into positive territory. However, futures are pointing toward a red cash open this morning, so watch to see if the rally can hold the yearly Linear Regression Line near 2967 for the rest of this week. From there, the next test to the upside will be the 200-SMA near 2996. If the /ES falters, the confluence of the 21-EMA and the 64-EMA near 2860 could be an important price level for support.
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