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• S&P 500 hovered near its highest level since August 2022, surpassing 4,200 points and retraced the whole gains while the Nasdaq is little changed, supported by AI-related stocks.
• Nvidia sees a 4% increase, briefly reaching a $1 trillion market cap, while Netflix surges over 3%. Intel and Qualcomm also perform well, with gains of 3% and 4.2% respectively.
• Tesla experiences a 4% gain following Elon Musk’s discussion with Chinese foreign minister Qin Gang, expressing a willingness to expand business operations in China.
• Dow Jones index declines over 100 points as investors closely monitor the votes on the debt ceiling. A deal was agreed upon by President Biden and House Speaker McCarthy, with the House vote expected to occur on Wednesday. However, several Republicans have expressed opposition.
• Traders remain attentive to upcoming economic data, including the payrolls report and the ISM Manufacturing PMI, which will provide further insights into the state of the economy.

The E-mini S&P 500 experienced a retracement from its highs, resulting in a 0.2% decline during the final hours of the New York trading session. This dip was influenced by the potential opposition in the House. While the daily interval may close within the previous balanced price range, the market has the potential to target the mean of the range, depending on upcoming economic data. It is worth noting that the market is trading above the developing value areas for the Year, Quarter, and Month, which lends a bullish technical outlook to the sentiment.

On the hourly interval, there is a test looming for the previous VWAP close level, which could attract supportive buyers looking to add to core long positions. The current auction appears to favor the selling side, but there is a possibility of absorption occurring around the mentioned VWAP level.

The short- to median-term calculations indicate a bearish bias in the market, with positive volatility favoring the selling side. However, the intraday interval reveals mixed calculations for the session, accompanied by a slight increase in the dollar. This dynamic might contribute to the market being perceived as balanced while keeps to be imbalanced to the downside for this particular session.

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