S&P 500 and DJIA Maintains Bullish Trajectory, However, Italian Risk’s Loom

Equity Analysis and News

• S&P 500 Maintains its bullish path
• Dow Jones breaks above trendline resistance posting fresh record highs

	Price	200DMA	RSI	Open Interest	IG Sentiment
Europe
FTSE 100	7512	7491	68	600,367	Mixed
DAX (Closed)	12353	12484	63	-	Bearish
CAC 40	5495	5387	68	279,771	Mixed
US
S&P 500	2922	2761	64	2,706,609	Bullish
DJIA	26548	25096	73	114,199	Bullish
Nasdaq 100	7586	7022	63	248,299	-

S&P 500

Improved risk sentiment has stemmed from reports that the Italian government may reduce its budget deficit target for 2020 and 2021. As such, the S&P 500 is called to open modestly higher. The rising channel keeps the S&P 500 on a bullish path. However, Italian risks may be back on the rise depending on the EU’s response to the budget.

Dow Jones Industrial Average

After another record high reached in the DJIA, the bias remains to the upside, which has been further supported by the break above the trendline. Prices would need to hold above the trendline to keep the index firm. Alongside this, RSI indicators show that there is a bullish divergence and thus supporting the case for higher prices. However, failure to consolidate above may leave the index vulnerable to the downside with the bottom of the channel coinciding with the support volume zone at 26048.