Wall Street from the beginning was doomed to an increase in indexes and only tweets from Donald Trump could change this and probably changed a bit. Even before the start of the session in the US, the European indexes grew strongly, which at the beginning of the American session could also help some bulls.
In the US, as in Europe, preliminary PMI indices for industrial sectors and services were published. The global investors learned that the index for the industry was 55.5 points. (55.4 points expected) and 56.2 points for services. (expected 56.5 points). The property price index published by FHFA in May increased by 0.2% m / m (expected 0.4%).
On Wall Street, the results of the companies (3M, Lockheed Martin, United Technologies, Verizon, and after the AT&T and Texas Instruments) were theoretically to have the greatest impact on the behavior of the markets. Already after Monday's session, good results of Google helped the bull camp. Similarly, the good result was presented by 3M and Verizon and only the price of Lockheed Martin shares did not grow. The indexes started the day with almost one percent jumps, and then they were losing consistently, which brought the NASDAQ to the cons for two hours before the end of the session, and the SP500 remained just above the neutral level.
You can not really see what the market could have cooled down. It looked like a typical profit-taking, but it might have been hurt by Trump's tweet again. On the day before the talk with Jean-Claude Juncker, head of the European Commission, the president wrote that tariffs are the "greatest" thing, and those who stretched the US finally want to negotiate. Not a pretty good beginning to start the negotiations.
Let's now take a look at the SP500 technical picture at the H4 time frame. After the breakout above the level of 280.62, the market might be heading towards the unfilled gap located between the levels of 283.38 - 284.44. The momentum is strong and positive, but the market conditions are now overbought in the current time frame. The nearest technical support is seen at the level of 281.10.
