SPX Back to Early May Levels on Debt Ceiling Hopes

Stocks remain well bid but are off midday highs after the bell, SPX Eminis have rallied back to the highest levels since May 2 in what remains a tentative risk-on move after House Speaker McCarthy told reporters earlier that he believes negotiating a debt ceiling plan by Sunday is "doable".

• S&P E-Mini Future are currently up 49 points (1.19%) at 4172; DJIA up 399.16 points (1.21%) at 33411.4; Nasdaq up 159.3 points (1.3%) at 12502.06.
• Leading gainers: Energy sector outperforming with a decent rebound in Crude (WTI +1.95 at 72.81), followed by Financial and Consumer Discretionary sectors, banks leading the former with Comerica +10.65%, Zion +9.05% and KeyCorp +7.20%. Laggers: Utilities and Consumer Staples sectors trading weaker.
• From a technical point of view S&P E-minis remain in consolidation mode. Price is trading above the 50-day EMA, which intersects at 4109.81. A resumption of gains would open key resistance and the bull trigger at 4206.25, the May 1 high.
• Clearance of this level would confirm an extension of the bull trend that started Mar 13. Key support has been defined at 4062.25, the May 4 low. A move through this level would instead highlight a bearish threat.