U.S. Blue Chips Open Week Strong, NASDAQ Lags

The trading week is off and running on Wall Street, with early returns mixed. At the halfway point of the session, the DJIA DOW (+270) is setting the pace, with the S&P 500 SPX (+2) and NASDAQ (-76) trailing. Today’s uptick in the DOW may be largely attributed to strong rallies in Boeing and Nike. On the other hand, sluggish big tech and growth issues are keeping the NASDAQ in check.

This morning’s economic calendar was sparsely populated, headlined by the JOLTS Job Openings (June) release. The JOLTS figure came in at 5.899 million, above projections (4.910 million) and May’s number (5.371 million). Although only a peripheral employment metric, the rise in job vacancies is predominantly viewed as being positive for the U.S. labor market.

At the moment, safe-havens are once again showing strength. GOLD is up more than $15.50 per ounce and the Japanese yen is firm vs the Greenback. Let’s dig into the USD/JPY daily technicals and see where the dollar/yen stands.

NASDAQ Lags, USD/JPY Enters Rotation

For most of 2020, the NASDAQ Composite and NASDAQ 100 have been the premier equities indices in America. Now, it looks like growth stocks are in danger of posting a two-session losing streak. At this point, it appears investors are interested in going long the safe-havens, such as the USD/JPY.

Here are a few levels to watch in this market as the session unfolds:

• Resistance(1): 62% Retracement, 106.25
• Support(1): Daily SMA, 105.69

Overview: In a Live Market Update from last Friday, I issued a sell recommendation for the USD/JPY from topside Fibonacci resistance. The trade’s entry was a near miss, but still may go live early this week. In the event we see the USD rally and stock indices such as the NASDAQ struggle, the shorting opportunity may be back in play.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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