Renewed NAFTA deal eased the market tension

U.S-Canada reached agreement on NAFTA deal and expected to name the new deal USMCA (the United States Mexico Canada Agreement). The news sends Dow Jones Industrial Averages futures skyrocketing more than 200 points before the market open.

Although it is positive news, the deal expected to have no impact on the U.S-China relationship. Traders will watch economic data release from the domestic market today. ISM Manufacturing PMI will be released on 10.00 AM EST, analysts forecast reading of 60.1.

Asian & European Stock market

Asian stock market buoyed by U.S-Canada new NAFTA deal. Nikkei up 125.72 points (+0.52%) to 24,245.76, China stock market closed on holiday, and Australia ASX 200 down 35.30 points (-0.57%) to 6,172.30. European stock market traded higher. DAX Germany up 0.59%, UK FTSE up 0.08%, Euro STOXX600 up 0.29%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA survive the selling pressure on Friday and closed the day as a bullish candlestick. Despite the bearish three black crow pattern, there is no breakout yet to confirm the pattern. It seems the bull has the upper hand today and might push the index toward the white horizontal line. Will we see breakout upside or another rejection from the level near the horizontal line?

United Parcel Service (UPS)

UPS is interesting to watch as the share prices testing the daily SMA 200. It is the first test on the averages since the previous breakout when the company announces earnings. Traders could place a long position with a tight stop below the averages.

Exxon Mobil Corporation (XOM)

XOM share prices trend turn positive following oil prices appreciation. The company seems to benefit from the rising oil prices and expected to continue its path upward as oil prices projected will continue moving up. The best strategy to take in XOM is buying on weakness. Currently, the level around $83.5 is the level to watch for a long position.