Stocks Roaring on Peace Optimism

US stock markets are on watch today after the S&P broke out to fresh all-time highs yesterday. Rising optimism around US/Iran peace negotiations is keeping equities firmly bid through the back of the week. Weaker oil prices and a softening in USD have contributed to a more positive risk environment this week, evidence by the strong rally in the S&P. The index is up more than 3% on the week and look poised for further gains while the backdrop remains favourable. Earlier in the week Trump signalled that talks between the two sides should resume this week while also declaring that the war might soon end altogether.

Israel – Lebanon Talks

Traders have clearly been bolstered by these comments with risk assets rallying across the board. Along with positive developments on the US/Iran front, risk sentiment is also being lifted on news of peace talks to take place between Israel and Lebanon. Trump posted yesterday that these historic talks would take place today, leading to hopes that a broader peace can be achieved in the region. If talks progress well and we hear positive headlines from them, US stocks look set to push higher again into the weekend.

Technical Views

S&P

The rally in the index has seen price breaking firmly above the 6,786 level, now probing above the 7004.26 level also (former ATH). With momentum studies bullish, focus is on a continuation higher with the bull trend line resistance around the 7,400 level the next upside marker to note.