An important session on Wall Street today. Continuation or end of correction?

The new week in the equity markets started with a rebound from the Friday sell-off, which in the case of some indices took the form of a small panic. Almost all European indices on Monday "They shine green". The improved sentiment in the stock markets is a result of a slightly lower fear of the new coronavirus mutation than on Friday (Omikron). Anyway, this applies not only to stock exchanges, but also to the broad market. Crude oil, panically sold out on Friday, strongly rebounds, South African Rand and other emerging market currencies strengthen, Friday's gains are corrected EUR / USD pair.

After the panic came a quick euphoria

US index futures are also rising, following European indices. And that's a lot, by 0,8-0,9 percent. This may herald a strong session on Wall Street, and thus opens the way to negate the sell signals generated on Friday. What is at stake is clearly visible on the US500's chart Tickmill platform based on quotation S & P500 index. The quotations rose to 4638,73 points. from 4582,95 points at the end of last week and are on the verge of negating the Friday breakout from the bottom of the 3,5-week growth channel. A break with a minimum decline that has not yet been realized. This supply pattern will be negated as the US500 returns above the resistance zone 4652,34-4658 points. This would open the way to recent historic highs again. 

US500 chart (CFD on the S & P500 index), H4. Source: Tickmill

Monday's session for Wall Street is extremely important. Possible return above resistance 4652,34-4658 points. it will open the way to records again, but an unsuccessful return will be a signal that the downward correction may be prolonged. Then the first target will be the zone 4551-4562 points.