US stocks rally during early trade

US stocks kicked off the third quarter on a positive note, with all the three major indices trading with strong gains during opening hours of trading on Monday.

At the time of reporting, the Dow Jones Industrial Average climbed 135-points to 21,482, while the broader S&P 500 Index added 13-points to 2,437. Meanwhile, tech-heavy Nasdaq Composite Index gained 22-points to 6,163. 

The gains came on an abbreviated session ahead of Independence Day on Tuesday, with trading volumes likely to be relatively subdued at the start of the week.

Although it would be a holiday-shortened week, a busy week of economic data, including the keenly watched NFP data on Friday, would keep investors on the edge and would have implications for the market's movement during the latter half of this week.

Technical outlook

Carol Harmer, Founder charmertradingacademy.com writes, "the DJI hit the upper trendline from the weekly charts and then we have just gone lower....and any upward move has been swiftly dispatched...today 21475 offers some good resistance...and this resistance extends to 21525....so this is the band we are looking at...21206 was last weeks low....Now we are in a new month so this is going to be quite important....Monthly charts remain over-bought....but frankly they have been overbought for some time now....I do think that unless we clear the highs of 21535 sadly the market will again come under pressure on rallies...."