US Session: Positive sentiment. Traders in Risk On mode, after the surprising drop in personal spendings.

Positive Sentiment – Support for Wall Street Futures in the Last Trading Session of the Week and Month

PCE Price Index met expectations, with the slowdown in Core PCE on a monthly basis and lower-than-expected Personal Spending increasing traders’ risk appetite. If the trend continues, this raises the possibility of the first rate cut by the Fed this year.

Strong Growth in Futures in Pre-Market Trading:

• SP500 is up 0.30%
• Nasdaq is up 0.23%
• Dow Jones is up 0.19%
• Russell 2000 is up 0.44%

Risk On Mode among Traders

• The dollar is declining, and bond yields are also down.
• The interest-rate-sensitive small caps index (Russell 2000) is leading the gains in Pre-Market.

Focus for the Rest of the Session:

• 16:45 – Chicago PMI

Technical Picture for SP500 Futures – Daily Chart

1. Long Trend
2. DeMarker Oscillator in neutral
3. Sequential in a downward printing
4. The current price is retesting the break of 23.6 FIBO of the last bullish impulse.

Today is the last trading session of the week, with many traders likely to take profits from short positions during the week, which will support Buy-side participants today.

• It’s also the last session of the month, further supporting the risk-on scenario for today’s session.

In conclusion: A breakout and close of the daily candle above 5,268 (local weekly resistance) will give traders confidence to attempt breaking out of the corrective channel and return above $5,300.
Alternatively: If today’s candle closes below 23.6 FIBO ($5,250), it will indicate insufficient buyer momentum, and sell pressure will increase next week, with trading moving towards $5,200/$5,180 levels.