The bulls were unleashed on Friday due to the rejection of the 104.10-20 after the level was a challenge.
From the rejection now posted a bullish outside range day. This, in terms, puts 107.00-45 back on the map. Congress and the White House again failed to come to an agreement on coronavirus relief after White House Chief of Staff Mark Meadows said on Sunday he was not optimistic on reaching an agreement soon on a deal for the next round of legislation to provide relief to Americans hit hard by the coronavirus pandemic.
Looking forward, investors will be looking to the U.S. jobs report for July, which will offer another look at the employment picture.
Due out on Friday is expected to show that 1.65 million jobs were added last month, slowing from 4.8 million in June.
The jobs report will come a day after the weekly report on initial jobless claims. Investors will be keeping their eyes on Washington where Congress is still deadlocked over the next round of economic relief from a pandemic.
On Friday, the $600 per week federal unemployment supplement expired after the White House and Congress failed to reach an agreement to extend the payments. Congressional Democrats want to see the weekly payments extended into next year as part of a broader package, but Republicans have said the $600 payments are an incentive to stay home rather than return to work.