Jobs and ISM Beat Add Fuel to Broad Market Rally

Consecutive positive data points in US economic releases have once again boosted sentiment, notably taking Equity and Cryptocurrency markets to a renewed frenzy.

ISM Services PMI came at 50.8 vs 50.5 expected, in the latest round of positive surprises in US Data, which should once again deter markets from the weaker United States theme due to volatile Trump Administration policies.

U.S. equity markets will see an early 1 p.m. close as Americans prepare for their Independence Day 4th of July Holiday.

All US Indices are making new highs, with the Dow close to 100 points from its ATH, while the S&P 500 and Nasdaq are still in All-Time High Price discovery.

The latest geopolitical news is revived chances of a ceasefire between Israel and Hamas as both parties seem to finally find common ground.

While markets are busy continuing their path upward, let’s discover where participants could find zones of interest for trading for the upcoming week.

Keep an eye on Cryptocurrencies during the long weekend to spot if positive sentiment is pursued throughout the 4 and a half day break for US Traders

Nasdaq, Dow Jones and S&P 500 Intra-Day Charts

Nasdaq 1H Chart

Source: TradingView

Buyers got back into control after yesterday’s pre-open bearish catalysts post-ADP negative surprise, bouncing on the 22,450 Pivot on a double-bottom.

Watch for potential immediate extension resistance at 22,900 – any continuation from here should not see any slowdown before the Potential Major resistance at 23,350 (coinciding with a psychological Level).

Sellers would need to see a break below the just-mentioned pivot to take the hand again from the strictly bullish momentum.

Dow Jones 4H Chart

Source: TradingView

The Dow is in pace to reach a new all-time high (currently 45,060 on its CFD) in either this session or the upcoming one on Monday, as long as no risk catalyst comes into play in the long weekend.

Prices are entering the ATH resistance zone, RSI is way overbought, but this is currently not stopping the strong bullish impulse in markets, as post-war sentiment and positive data do not give many reasons for bears to step in.

The 4H MA 20 is a good measure for the current continuation of the bullish momentum, which should be defended by buyers; any breach below could point towards an intermediate correction.

Dow Jones 1H Chart

Source: TradingView

Buyers are looking to maintain the current trend while staying above the 1H MA 20 and 50, and would need to push above the 45,060 All-time highs.

Any break-up would point to a push at 45,600 (Level from Fib Extension) and any further continuation towards the 46,000 psychological zone.

Bears would either look at an immediate rejection of the ATH, a break of the upward post-war trendline combined with the Hourly MAs, or a rejection of the Fib Extension potential resistance.

In the meantime, prices are firmly in control of Buyers.

S&P 500 1H Chart

Source: TradingView

Buying momentum is truly stellar in the S&P 500 with a continuous and not-too-steep trendline that is most optimal to maintain momentum, further supported by the 1H 20 and 50 Moving Averages.

The current hurdle to breach for buyers is around 6,300, and we are entering such a zone.

S&P Bears could either wait until the potential resistance fib extension resistance at 6,370 or a break of the Continuous Upwards trendline, currently around 60 points lower.

Momentum is strong but overbought on many short timeframes; therefore, it will be interesting to see if buyers manage to push prices nonetheless.

Safe Trades and an enjoyable long weekend & Independence Day for US Traders!

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