A 3% rally in the Nasdaq and near 3% rally in the S&P 500 yesterday is certainly brightening up the mood in the equities space this week. Even Netflix’s earnings report, which could have been worse, is providing reason for investors to be cheerful after hours and we are seeing US futures perk up as a result.

S&P 500 futures are up 0.6% currently with Nasdaq futures posting a similar percentage gain going into European morning trade. A look at the cash index for the S&P 500 shows that we may be on the verge of a stronger rebound if buyers can break above resistance from the 28 June high at 3,945.86:

With broader markets still feeding off the fact that the Fed is seen backing away from a 100 bps rate hike next week, there is some comfort after Waller tried to stir up the debate last week. That is also keeping the dollar on the backfoot and the greenback is struggling a little today as well with EUR/USD up 0.2% to 1.0245 and eyeing the 50.0 Fib retracement level at 1.0283:

That will be a key resistance level to watch in the days ahead and if broken, it could set up a push towards 1.0400 before we get to the Fed meeting next week.