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  • The daily chart of the S&P 500 futures shows a bullish breakout. 
  • Upbeat US jobs data would bolster the bullish technical bias. 

The futures tied to S&P 500, Wall Street’s equity index, jumped 0.42% on Wednesday, confirming an upside break of trendline falling from June 10 and June 23 highs. 

The breakout has opened the doors for a test of immediate resistance at $3,134 (the lower high created on June 23), which, if breached, would shift the focus to the high of $3,227 reached on June 8. 

The case for a rally toward recent highs would strengthen if the US Nonfarm Payrolls data for the June beat estimates. 

The data due at 12:30 GMT on Friday is expected to show the US economy added 3,000K jobs in June following May’s 2509K additions. However, the jobless rate is forecasted to have increased to 7.7% from 7.3%. Meanwhile, Average Hourly Earnings are expected to have risen by 5.3% year-on-year in June, marking a slowdown from May’s increase of 6.7%. 

Stocks may feel the pull of gravity if the jobs data disappoints estimates by a big margin, although pullbacks could be short-lived, as the Federal Reserve is injecting liquidity into the system at a frantic pace. 

From a technical analysis standpoint, the bias in the S&P 500 futures would turn bearish below $3,000.

Daily chart

Trend: Bullish