Despite ongoing geopolitical tensions in the Far East, U.S. equity markets extended their gains, with the S&P 500 rebounding from its 200-day moving average. The S&P500 Indicator has turned GREEN, signaling a shift toward bullish momentum.
Monday’s session printed a strong outside bar, closing decisively above the 6000 mark and reclaiming all major moving averages. This technical development suggests a continued move higher, with the December 2024 all-time high at 6300 now emerging as the next upside target.
Seasonality trends for July are historically supportive, adding further weight to the bullish case. The current backdrop reflects a clear risk-on environment—as long as crude oil prices remain under pressure, tailwinds for equities are likely to persist.