NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground On Trade Deal Optimism

SP500

SP500 tests new highs as traders focus on the trade deal with Japan and bet that a deal with the EU will be reached soon. According to recent reports, a U.S. – EU trade deal may include a tariff of 15% on EU goods. Thus, the deal is expected to look similar to the deal with Japan. Today, traders also had a chance to take a look at the Existing Home Sales report for June. The report showed that Existing Home Sales declined by -2.7% on a month-over-month basis, compared to analyst forecast of -0.7%. The weaker-than-expected report did not put pressure on stocks as traders remained focused on trade deals. Healthcare and industrials stocks were among the biggest gainers in the SP500 index today. Utilities stocks found themselves under pressure as Treasury yields moved higher.

SP500 is trying to settle above the resistance level at 6340 – 6350. In case this attempt is successful, SP500 will move towards the 6400 level. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

NASDAQ

NASDAQ gains ground on trade deal optimism. Baker Hughes, which is up by 11.1%, is the biggest gainer in the NASDAQ index today. The stock rallied as traders reacted to the strong second-quarter report.

From the technical point of view, NASDAQ needs to settle above the nearest resistance level at 23,150 – 23,200 to gain additional upside momentum in the near term.

Dow Jones

Dow Jones rallied, supported by strong demand for healthcare and industrials stocks.

Dow Jones settled above the previous resistance at 44,600 – 44,700 and is trying to settle above the next resistance at 45,000 – 45,100. A successful test of this level will push Dow Jones towards the 45,500 level.

For a look at all of today’s economic events, check out our economic calendar.