Welcome to the home for real-time coverage of U.S. equity markets brought to you by Reuters stocks reporters and anchored today by Chuck Mikolajczak. Reach him on Messenger to share your thoughts on market moves: charles.mikolajczak.thomsonreuters.com@reuters.net

 

S&P 500: ROUND TWO WITH RESISTANCE (0915 EDT/1315 GMT)

Like the Dow Jones Industrial Average, hourly charts suggest the S&P 500 .SPX is primed for a rise in volatility. And with futures 1YMcv1 EScv1 resolving their tight short-term ranges to the upside in overnight trade, the SPX looks to step into the ring again with tough resistance right at the open. (Click on chart below)

Indeed, CME E-Mini S&P 500 Futures EScv1 are suggesting an SPX jump of about 20 points with the opening bell. Thus, the SPX can immediately attempt to punch its way through resistance at the 76.4%/78.6% Fibonacci retracement zone of its May/June decline (at 2,900.95/2,905.91) and its 2,910.61 June 11 high. 

Closing above these levels can add credence to the view that the SPX is forming a large expanding triangle from its early 2018 high. If so, ultimately, the SPX can advance above its 2,954.13 record high and take on the resistance line across its 2018 tops (now at about 3,015) before risk for a more serious reversal may then build again.

Breaking the June 12 trough (2,874.68) and the 50-day moving average (2,874.15 Tuesday close), however, can suggest risk for a deeper pullback.

 

(Terence Gabriel)

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FUTURES HIGHER ON FED HOPES (0852 EDT/1252 GMT)

Stock index futures were pointing to a higher open on Tuesday, as expectations for a more dovish turn by the Federal Reserve grew following comments from European Central Bank President Mario Draghi.

Draghi said the ECB will ease policy again if inflation fails to pick up, which would mark one of the biggest policy reversals of his tenure, triggering a Twitter response from U.S. President Donald Trump. 

Still, the Fed is expected to leave borrowing costs unchanged at a policy meeting this week but possibly lay the groundwork for a rate cut later this year. 

On the economic front, U.S. homebuilding unexpectedly fell in May, but data for the prior two months was revised higher and building permits increased. 

Below is your premarket snapshot:

(Chuck Mikolajczak)