The positive mood so far this week has been rather interesting to take note of but now is where dip buyers will have to follow through on the bounce since last week.
The S&P 500 has held at support from the July to October lows from last year and returned a bounce above its 200-day moving average (blue line) this week. But now with futures pointing higher, we look poised to run into a test of the 100-day moving average (red line) later at the open.
A break above that will keep buyers poised and the upside momentum running but a stall there could see a bit of a rethink before getting to the US non-farm payrolls on Friday.
This will be the spot to watch in gauging the equities bounce this week.
