All eyes on S&P 500 this week

Welcome to the last full trading week of January. Monday starts with a pinch of optimism after the bullish session on Friday. This week, we will trade without a big Asian player – China, as its market is closed due to the celebration of the Spring Festival, a.k.a. the Chinese New Year. The upcoming year is the year of the rabbit and let’s hope that the stocks will also hop to the upside, just like the cute furry animal.

Today’s calendar is empty. The only fireworks should come from the speech of Christine Lagarde from the ECB scheduled after the close of the European session. Tonight, we will also learn the PMIs from Australia starting with a PMI festival which will be observed on Tuesday when almost all major economies present this data.

Futures are starting the new week near the Friday close. This week, all eyes will be on the S&P 500 testing the most important line on the market again – a long-term down trendline connecting lower highs since the beginning of 2022. Breakout to the upside would mean a proper, long-term buy signal.

On the currency market, the weakest one right now is the Yen. This is an interesting occurrence, since it is a continuation of the movement that started last Monday and perhaps a confirmation of a trend change on this instrument. A few pairs with Yen have very promising bullish setups on the chat and all we need for buy signals is just a small push to the upside.

On the commodities market, optimism about metals is apparent, where the best start of the new week belongs to copper, currently trading almost 1% higher. Palladium and platinum are rising significantly as well. This week will be crucial for oil. On WTI, in theory, we already have a buy signal and on Brent, we are very close to having one. Oil closing this week on yearly highs will be a strong bullish statement.

It is worth mentioning that the earnings season in the US is accelerating. On Wednesday, for example, we will find out the numbers for Tesla, one the most favorite stocks for speculators.