The US market opened with low volatility and a narrow trading range, as buyers struggle to overcome key resistance levels following a 12% rise from recent lows. Futures for major indices, including the US500 and US100, are fluctuating within approximately 0.2%. While earnings season is underway and financial sector results have generally exceeded expectations, many firms are reporting weaker net interest margins, raising concerns about a potential slowdown.
Macroeconomic indicators are also in focus, with the NY Empire Index significantly surpassing expectations at 11. Investors are awaiting key data releases, including weekly crude oil inventories and the Federal Reserve’s “Beige Book.” The US100 index remains near a critical resistance area around 26,000 points, suggesting a need for consolidation before any breakout can occur.
One key takeaway for market professionals is the importance of maintaining support above 25,800 for buyers to sustain momentum; otherwise, a deeper correction could materialize, potentially testing Fibonacci retracement levels.
Source: xtb.com