NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As U.S. Strikes Deal With UK

SP500

SP500 rallied as traders cheered the U.S. – UK trade deal. The final details of the deal would be negotiated in the upcoming weeks. This is the first deal that was reached after President Trump imposed tariffs on U.S. trade partners, so it’s not surprising to see that traders rushed to buy stocks. The rally was broad, and most market sectors gained ground in today’s trading session. Defensive sectors like utilities, consumer defensive, and healthcare were mostly flat as demand for safe-haven assets declined. Treasury yields rallied, but this move did not put any pressure on stocks.

Currently, SP500 is trying to settle above the resistance at 5700 – 5710. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 5800 – 5810 range. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in the near term.

NASDAQ

NASDAQ tested new highs as traders focused on the successful trade deal. Strategy, which was up by 6.8%, was among the biggest gainers in the NASDAQ index today. The stock rallied as Bitcoin climbed above the $100,000 level.

The nearest resistance level for NASDAQ is located in the 20,300 – 20,350 range. In case NASDAQ climbs above the 20,350 level, it will head towards the next resistance at 20,700 – 20,750.

Dow Jones

Dow Jones tests new highs amid broad rally in the equity markets. Boeing, which is up by 4.2%, is the biggest gainer in the Dow Jones index today. The stock soared as UK will purchase Boeing planes worth $10 billion as part of the trade deal.

A successful test of the nearest resistance level at 42,000 – 42,100 will open the way to the test of the next resistance at 42,700 – 42,800.

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