- S&P 500 futures flip to gains amid improving mood.
- Technical set up turns in favor of the bulls.
- Holiday-thinned trades boost the upside attempts.
S&P 500 futures, the risk barometer, has turned positive in early Europe, largely suggesting a shift in the risk sentiment, as upbeat US jobs data underpin hopes for a quick economic rebound.
Meanwhile, the US holiday-thinned market conditions also seem to exaggerate the renewed upside in the futures.
From a near-term technical perspective, the price has charted a symmetrical triangle pattern on the hourly sticks, calling for a rally towards 3,165, the likely pattern target.
The hourly Relative Strength Index (RSI) points upwards at 60.27, indicating the further upside play remains intact.
The bullish break gained momentum after the price regained the horizontal 21-hourly Simple Moving Average (HMA) for the first time since Thursday’s NY close. With this, the futures now trade above all the major HMAs.
Any pullback will challenge the bears’ commitment at the resistance-turned-support of 21-HMA, now at 3,130. A break below which the rising trendline support at 3,125 will be tested.
Further south, the upward sloping 50-HMA will offer some strong support, limiting the declines in the near-term.
S&P 500 Futures: Hourly chart
