The S&P 500 is the gift that keeps on giving.
The equity market was able to consolidate yesterday, as the June S&P futures put in a slightly new high, reaching 1,615.25 after holding support against 1,605. The S&P futures have begun grinding higher in today's session, and are seeing aid from the central bank in Australia which cut their key interest rate to 2.75 percent to the surprise of some. We are seeing the global theme of easy money policy continue, just when many were started to believe earlier in the year that it was going to be curtailed.
(Read More: Reserve Bank of Australia Cuts Rates to Record Low)
German factory orders unexpectedly increased, and many investors are encouraged to see positive data out of Europe. Look for a test of 1,623 in the S&P today. The short-term range will be between 1,605 and 1,623. A close above here will find our first target of 1,631, and do not forget our ultimate upside target is 1,655. Only a close back below 1,605, and furthermore 1,600, will lead to a consolidation. And it will take a close below 1,593 to 1,595.50 to signal a further correction.
Keep an eye on Friday's high, as a close above it will further confirm immediate upside momentum. The low in the June futures is 1,609.25 this morning. If the market falls back slightly after the cash open, use this level (a slight new low) as a buying opportunity.