Facts
- As of 12 PM GMT, the U.S. stock market is posting modest gains at the start of the new week, following reports of an agreement with China allowing the export of rare earth metals to the United States.
- The US500 futures contract on the S&P 500 index has rebounded sharply from the local low of April 7, 2025, near 4,850 points, and on Friday, June 6, surged above 6,000 points — marking its highest level since February.
- The US500 has completed a V-shaped recovery and remains above 6,000 points on Monday. It now trades just around 2.7% below its all-time high.
Recommendation
Long position on US500 at market price
- Stop loss: 5850
- Take profit: 6150
Opinion
The ongoing rally on Wall Street suggests that a return to all-time highs — fueled by momentum-driven strategies — is within reach. With a strong earnings season behind us, investor attention is once again shifting toward the themes of AI innovation and the broader tech revolution, accompanied by hopes for normalized trade relations and the gradual de-escalation of trade war rhetoric from the Trump administration.
In this context, the current rally in the US500 could evolve into a breakout above the February ATH. We recommend initiating a long position at market price, accompanied by a stop-loss order to limit downside risk.
Source: xStation5
