On the data front, Investors will also keep an eye on Fed Chair Powell semi-annual report to Congress. On the data front, consumer and producer , retail sales and industrial production will provide an update on the economic recovery. Elsewhere, China GDP growth for Q2, UK CPI and jobless numbers and BoJ interest rate decision will also be in the spotlight.
Here is what you need to know to start your week
S&P500 (US Market)
All three major averages notched record closes on Friday, after a sell-off the day before prompted by fears of slowing growth and worries that new Covid-19 variants could stall the global economic recovery. The benchmark index $SPX gained +0.5% (+21.8 points) to close at 4,372 level during the week, notching up towards another new all time high.
The price ascend have allowed $SPX to break out of its trend channel resistance for the 3rd time in since February 2021. It is important to remain cautious of the existing rally, as every breakout of the highlighted channel is met with price-volume divergence weakness, along with a correction towards its channel support.
The immediate support to watch for $SPX this week is at 4,230 level; a confluence of resistance turned ; and break of its 50DMA.