S&P 500 E-mini futures have rebounded from a one-month low to test the shorter descending trendline drawn from the September high, with sellers still active just above it. The S&P 500 is up 12.81% year-to-date, trailing both Nasdaq gauges but ahead of the Dow Jones.
Futures rebound after breaking the descending channel
S&P 500 E-mini futures have broken out of the broader descending channel that contained the August-to-September pullback. After reaching 7,848.50 on September 22, the contract fell through a sequence of lower highs to approximately 7,672 on October 1.
The rebound from that low has been sharp. Price reached 7,810.25 on October 2 before the four-hour bar finished at 7,776.50, putting futures just above the shorter descending trendline drawn from the September high. The rejection from 7,810 shows sellers are still responding above the trendline, which makes this look more like an early breakout attempt than a completed one.
Momentum improves as the trading range widens
MACD has crossed back above its signal line and above zero. Volume during the early part of the October 2 advance was relatively strong, though follow-through later in the session was less impressive. The four-hour average trading range has also widened, rising from the high-20s toward roughly 35 points, a shift that makes follow-through above resistance more meaningful than the initial break.
The first test for the contract sits at 7,780 to 7,810. Sustained four-hour closes above that zone, followed by a pullback that holds, would strengthen the case for another run at 7,840-7,850. Falling back beneath the breakout area and failing to recover would instead reopen 7,720-7,740, with the October low near 7,673 standing as the more important structural reference below.
Nasdaq leads a growth-heavy year
Year-to-date, the Nasdaq 100 leads major US indices with a 22.01% gain, followed by the Nasdaq Composite at 16.99% and the S&P 500 at 12.81%. The Dow Jones trails at 6.48%.
According to investingLive.com, the stronger Nasdaq performance suggests market leadership remains concentrated in growth-heavy areas, making continued participation from technology stocks an important confirmation to watch if the S&P 500 breakout is to hold.
Source: investingLive.com
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