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The S&P 500 has managed to close above 2100 for the first time since 20 April and is now a mere 1.1% away from a new all-time high. ADP employment for May was in line with market expectations, which was readily greeted by a market eagerly awaiting the release of the non-farm payrolls numbers. Just as markets had begun to increasingly price in a July rate hike, a week of mixed US data started to cast doubt on this eventuality. US markets were reassured by the ADP employment print and now look primed to break sharply higher should NFP come within market expectations.
The technicals on the S&P 500 have been looking better and better all this week. The trend indication of the Ichimoku cloud returned to uptrend territory again on Monday. With strong technicals and a close above the important psychological level of 2100, this bodes well for the session today and into next week.