This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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.