The XJO is expected to open higher this morning following another indecisive night of trading in the U.S which saw their market finish practically flat. Their futures have moved into the green.
This morning is the same as yesterday morning. Our market edged higher and open just above 8,700. The previous night, the U.S finished flat after shedding intraday gains that we heralded by their positive futures. Yesterday their futures were mildly green. They ended up finishing flat again. This morning our market should open just above 8,700 and their futures are mildly green again.
U.S markets look tired, likely to the frustration of ours which looks like it wants to continue the rally. We likely can’t commit until we see the U.S be reinvigorated. We may hold onto the opening gains today, but we shouldn’t expect much.
US Markets
US shares closed fairly flat again overnight, with the DOW JONES finishing higher, the NASDAQ finishing lower, and the SP500 fairly flat. The major event overnight was a speech from Fed Chair Powell, though the market didn’t really glean much from his comments. Instead, there was more noise about Trump plans to oust Chair Powell, which the market does not like. Trump’s call for cutting interest rates by 3 percent from here is stupid. After market tonight many large US companies will be reporting results, including Google and Tesla, with many other mega-caps reporting in the coming days. These earnings reports will likely determine market movement form here.
Nine of the eleven sector groups of the SP500 closed higher overnight, with Healthcare, Real Estate, and Utilities the best performers. Technology and Communications stocks saw the most selling.
Technically, the SP500 has closed just beyond the all-time high resistance at 6,300. This could indicate further upwards movement, though it certainly wasn’t a clear break of this level. Should the index rise any further however, that would suggest the gains will continue. The previous resistance at 6,150 which may now act as support.
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