- Q2 started with a bang across equity markets as yesterday saw another bearish drive show-up in the S&P 500. A bit of support came-in around the 38.2% retracement of the post-Election move before the US close yesterday, and the S&P 500 has bounced up to find a bit of short-term resistance around an area of prior support.
- The US Dollar continues to cling to the 90.00 level in DXY, and this keeps the door open for a number of interesting scenarios on both sides of the Greenback. On the short-side of USD are setups in both EUR/USD and USD/JPY that can remain interesting in the near-term, and we look at each below.
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US Stocks Start Q2 on a Rough Note
Yesterday’s open was not friendly to US equities, as a quick dip to start Q2 ran for the first part of the trading day. The S&P 500 made a fast approach towards the February double-bottom at 2,530; but a bit of support showed up around 2,550 ahead of the close with prices rallying-up to lower-high resistance. Price action in US equity futures has remained largely stable in the overnight session and prices are holding on to yesterday’s support approach this morning’s open.