The XJO is expected to open higher this morning following a continued bullish move in the U.S overnight.
The U.S stalled at all-time high resistance last night, and we should expect our market to do the same today. We should open just above 8,600. U.S futures are flat this morning, but if they herald a break tonight then our market may have the confidence to lead the charge and break first– but this seems unlikely.
We continue to expect the channel to hold for now. Considering the underlying uptrend in both our market and the U.S, we should expect the channel to eventually break higher. It seems we should reach that point soon, as bullish pressure seems to be building as we grind along all-time high resistance.
US Markets
US shares again closed higher overnight, though gains were fairly small with their indices around resistance. US shares rose after a report showed fewer jobless claims than expected, which encouraged investors that the tariff situation isn’t damaging the economy too much at the moment. Still there is plenty of uncertainty around tariffs, and while this remains the case, there is always the risk of a big spike downwards on negative tariff news. Regardless, incredible levels of money printing keep propping up valuations, and that money printing is only set to increase from here.
Nine of the eleven sector groups of the SP500 closed higher overnight, with Discretionary, Energy, and Utilities the best performers. Communications stocks saw the most selling.
Technically, the SP500 recently found some resistance around 6,300 and it returned to this level overnight. 6,300 would have to break for further gains to look likely. The previous resistance at 6,150 which may now act as support.
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