US stock market closes in on high, "melt up increasingly probable"

Stocks were mixed on Monday.

The S&P 500 rose 0.5 percent and the STOXX Europe 600 rose 0.3 percent.

However, the Nikkei 225 fell 0.4 percent while the Shanghai Composite Index fell 0.2 percent.

With its advance on Monday, the S&P 500 is 1 percent below its all-time closing high from May 2015.

Technical analysts at HSBC think that the US stock market is getting close to a melt-up.

"The S&P 500 industrials sector has given a bull signal with momentum turning higher on the back of a positive cyclical trend indicator," the analysts wrote.

Also, the analysts noted that the FANG stocks -- Facebook, Amazon.com, Netflix and Alphabet -- have broken through a technical resistance line.

"This is further evidence that a melt up in U.S. stocks is becoming an increasing probability," the HSBC analysts concluded.