Dow Industrials knocking on the new highs door
- US equity index futures modestly green on US-EU trade deal
- Euro STOXX 600 index up ~0.2%
- Dollar rallies; crude up ~2%; bitcoin rises slightly; gold dips
- US 10-Year Treasury yield edges up to ~4.40%
DOW INDUSTRIALS KNOCKING ON THE NEW HIGHS DOOR
In the wake of the U.S.-EU trade deal, U.S. equity index futures are modestly higher in premarket trade on Monday. This ahead of an event-filled week which includes the July 29-30 FOMC meeting, a number of big tech earnings, and July non-farm payroll data due on Friday.
In any event, on Monday, the Nasdaq Composite 
IXIC will be attempting to score its 16th record high close of the year, while the S&P 500 index 
SPX will be shooting for its 15th record closing high of 2025.
Meanwhile, with zero record closing highs under its belt so far this year, the Dow Jones Industrial Average 
DJI has remained on the outside of the new highs party.
That said, the Dow ended Friday at 44,901.92, which put it down just 0.25% from its 45,014.04 December 4 record closing high, and down 0.38% from its 45,073.63 December 4 record intraday high.
Thus, it won't take much additional strength for the DJI to potentially open the door to new highs.
Traders are eyeing interim hurdles including the resistance line from the December intraday high, which resides around 45,000, and has essentially capped strength so far this month. The July 23 close was at 45,010.29 and the July 23 intraday high was at 45,016.71. The January 31 intraday high was at 45,054.36.
On a breakout to new highs, the Dow would have potential to target a resistance line from its 2007 high, which proved to be a barrier in late November-early December of last year, and now resides around 47,000 on a weekly basis.
The Dow has initial support at its July 16 low at 43,758.98. The rising 10-week moving average (WMA) should be just over 43,500 this week. The rising 40-WMA should be around 42,850 this week.
(Terence Gabriel)
*****
EARLIER ON LIVE MARKETS:
WHY SO HIGH? CLICK HERE
BUYERS BEWARE CLICK HERE
WHY EUROPE'S CAR STOCKS AREN'T SHIFTING GEARS CLICK HERE
STOXX RISES AS EU REACHES US TARIFF AGREEMENT CLICK HERE
EUROPE BEFORE THE BELL: FUTURES JUMP ON EU-US TARIFF DEAL CLICK HERE
US AND EU AVERT TARIFF BUST-UP CLICK HERE
