S&P500

The US market closed the week with strong gains. Nonfarms are expected to be published.

At the end of the week, US stocks scored gains. The Dow added 1%, the NASDAQ grew by 1.4%, and the S&P500 increased by 1.9%.

The S&P 500 is trading at 4,130. It stays in the range of 4,050 – 4,180.

The main US market index closed the week with its strongest rise since March 2022. Based on technical indicators, the index rose well above the 50-day average and reached the 100-day average. A strong downward correction is possible.

Retail sales in Germany slumped by 1.5% last month. The negative sentiment in Europe's economy is increasing both on the back of high inflation and the energy crisis.

The ISM indices will be published on Wednesday and Monday and the labour market report (nonfarms) will be released on Friday. The number of jobs is expected to rise by 275K.

Oil is trading in a $100-$107 range. Brent stands at $103 per barrel. OPEC meeting to be held on August 3.

The first cargo ship (flying the flag of Sierra Leone) loaded with corn is scheduled to leave the port of Odessa today. This is the first shipment by sea since the war began. The Ukrainian president said yesterday that Ukraine's harvest this year could be half its usual amount.

Worldwide sales of electric vehicles are growing rapidly, with 300,000 in South Korea, up by 70% this year.

The official manufacturing purchasing managers index fell to 49 in June, below the 50-point mark that separates contraction from growth. The official non-manufacturing PMI in July declined to 53.8. The main event of the year, the 19th National Congress of the CPC, is taking place in China. The main question is whether Xi Jinping will stay in power for a new term.

On Friday, a separate report showed that the US consumer sentiment index for July was upwardly revised to 51.5.

Conclusion. The US market moved up last week. However, long positions should be opened after a strong pullback downwards.