US Session: Flat premarket. S&P just below yearly highs.

Flat PreMarket as futures hover around zero. S&P 500 inches from annual highs. Signs of waning momentum in China weighed on sentiment, big techs underperformed, but the narrowing range hinted at some strength in bullish participants.

The dollar index remains under pressure, currently below the 104 level at the bottom of a broad weekly range.

The Federal Reserve and the European Central Bank are due to make their interest rate decisions next week, with the Fed hinting at an easing tone while the ECB maintains its hawkish rhetoric. This partly supports the overtaking of US markets. On the other hand, interest rates are high enough that they are already affecting the economic fundamentals, and this effect will continue to limit earnings potential.

One of the things that worries traders is that the market has been too excited that central banks can quickly cut interest rates preemptively. This casts doubt on inflated earnings expectations at Big techs, which could ultimately lead to some decline if central banks do not give similar indications.

S&P narrows the weekly range more and more, aiming for another attempt to reach the annual highs / 4,300/. The bullish outlook is maintained, with the price located in the middle of the broad Long trend channel since the beginning of the year, with the volumes in the last two sessions above average, and the hold around yesterday’s closing levels, hinting at bull pressure in today’s session as well.

On the other hand, the upcoming Fed meeting will keep traders under stress, which could ultimately lead to a pullback in the price in the coming sessions, to the 4,200 levels, after the aggressive break above the previous High.