SP500 tests new highs as traders focus on U.S. – Vietnam trade deal. Vietnamese exports to the U.S. will face a 20% tariff, while U.S. goods to Vietnam will be exported at zero tariff. Traders expect that the U.S. will announce other trade deals soon. Today, traders also had a chance to take a look at ADP Employment Change report. The report indicated that private businesses cut 33,000 jobs in June. Analysts expected that private businesses would add 95,000 jobs, so the report missed estimates. Energy stocks were among the biggest gainers in the SP500 index today as traders reacted to the strong rally in the oil markets.
From the technical point of view, SP500 settled above the resistance at 6185 – 6195 and is moving towards the 6250 level. If SP500 climbs above 6250, it will head towards the 6300 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
NASDAQ is trying to settle above the resistance at 22,550 – 22,600 as Tesla gains 4.8%. The stock rallied as traders bet that the company’s vehicle sales have bottomed.
If NASDAQ climbs above the 22,600 level, it will gain additional upside momentum and move towards the 23,000 level.
Dow Jones is mostly flat as traders take some profits off the table after the recent rally. Nike, which is up by 4.2%, is the biggest gainer in the Dow Jones index today. The stock rallied as traders reacted to U.S. – Vietnam trade deal.
If Dow Jones manages to settle above the resistance level at 44,600 – 44,700, it will head towards the next resistance level at 45,000 – 45,100. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.
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Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.