The XJO is expected to edge higher on open this morning following another lackluster night of trading in the U.S. Their futures are flat.
We should open near 8,150 which has been a sort of inflection point as well as a resistance and support level. It seems this is where out point of comfort is whilst we wait and see how the U.S tracks.
It feels likes some of the bullish undercurrent our market has had over the past month or so has left, but it has not been replaced with our usual cynicism just yet.
There is a tentative uptrend line that comes in at roughly 8,100 but we if track sidewards for a few more sessions we will come to meet it. We could easily bounce from here if the U.S decides to continue higher.
US Markets
US shares closed slightly lower overnight, with the DOW JONES and SP500 finishing in the red, while strength in tech stocks helped the NASDAQ to eke out a small gain. There was little in the way of news or events for US shares overnight and instead a little profit taking crept in. Tonight we will see a US GDP revision, though this is the second revision so its uncertain as to whether this reading will have much effect on the market. Instead, Friday night’s PCE reading will be the most important event of this week. This is the FED’s preferred measure of inflation and should inflation re-emerge, markets certainly wont be happy.
Only two of the eleven sector groups of the SP500 closed higher overnight, with Technology the strongest performer, followed by Utilities. Every other sector saw moderate selling except for Energy which saw strong selling.
Technically, the SP500 is stalling around potential resistance at 5,730. Movements since the break higher last week have been quite small and instead we are waiting for a clear break in either direction to call the next directional move.
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