The S&P 500 futures seem headed towards a test of the 1040 region. The question is, of course, what happens next?

The chart for the S&P futures shows that the 1080 level has been penetrated, and this sets up the possibility that eventually the market needs to robustly test the 1040 region again.

The fact that the Japanese yen is strengthening quite considerably and approaching a test of the fairly critical level around 90.40 suggests that today could be quite consequential for US equities and risk assets in general.

The S&P futures are trading at a sizable move up from Friday’s close, but with some cloud resistance at 1134 on the daily chart there is a possibility of a gap and trap move today for US traders.

The S&P 500 managed to push decisively above the 1100 level in Tuesday’s session and now seems to be ready to confront another key test at 1120, which is the level of the 50-day EMA.

The S&P 500 futures have returned to the 1094 region which is really the pivotal level for the index and leaves the issue of the near-term direction unresolved.

The S&P e-Mini futures is exactly at the 1093 level which represents an area of possible resistance. The moves over the next couple of sessions will clarify whether the market is ready to rebuild back towards 1140 or whether the recent rally runs out of steam.

There has been a notable change across the asset class spectrum in the last 72 hours, indicating that risk appetite is increasing.

There are many sectors where the 50-day EMA is on the verge of dropping below the 200-day EMA.

The S&P 500 looks destined to test the 1040 level, and if the market closes below that, then there could be mayhem across many asset classes.