The XJO is expected to rally on open this morning as buying continued in the U.S overnight. Their market closed into fresh all-time highs and our market should be expected to do the same today.
Yesterday we anticipated the break in the U.S despite their mild futures. We closed into fresh all-time highs, and we should extend them this morning with an expected open near 8680. It is hard to suggest where our market will stop, but we tend to like whole numbers so roughly 8,700 or 8,650 may end up becoming the next resistance. U.S futures are flat so we shouldn’t expect much more today.
When our market makes fresh all-time highs, often it will either pullback immediately, or within a handful of days of consolidation. This means that if you are in a condor, you may want to wait until Monday where we should see some profit taking before closing or rolling the position.
US Markets
US shares closed higher overnight, with a notable jump across all three major indices. The SP500 closed at its highest ever closing level, just shy of the 6,300 point mark. US shares rose with fairly positive economic data, with retail sales growing by more than expected, and with fewer jobless claims than expected. US economic data has been quite positive recently, but their inflation has also been rising, meaning that interest rate cuts are starting to look less likely. Still, momentum remains firmly to the upside, and should the SP500 break above 6,300 points, we would have to assume further gains. There is not much in the way of US economic data over the next week, though we will see plenty of US company reporting, which could easily shift markets.
Nine of the eleven sector groups of the SP500 closed higher overnight, with Financials, Technology, and Industrials the best performers. Healthcare stocks fared the worst.
Technically, the SP500 is really testing the all-time high resistance at 6,300, though it was unable to close above this level despite the strength 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.