The XJO is expected to edge higher on open this morning.
The U.S rebounded from their key all-time high resistance overnight. Despite their signs of pulling back, our market still feels comfortable moving higher as we also aim to return to our key all-time resistance at roughly 8,450. U.S futures are flat, and unless they herald a move higher during our session today, we shouldn’t expect our market to break through.
Yesterday we rebounded off the accelerated short-term uptrend line, which forms the ascending triangle with the resistance at 8,450. We are trading closer and closer to the point of the triangle. We should break higher, but it wouldn’t be too surprising to see our market break lower and shallow out. Either way, we will likely be led by the U.S. If they break through and make fresh highs, our market is in a mood where it will eagerly price it in.
US Markets
US shares closed lower overnight, with moderate selling across each of the three major indices. The lower movement brought the run of seven consecutive gains to an end for the SP500, though movements were mostly quite small. Shares moved lower after PCE price data, a measure of inflation, came in a little stronger than expected for the second straight month, calling into question whether the Fed would cut interest rates again in December. Still, the market consensus is for rates to be cut again in December, and this is unlikely to change unless we see November’s inflation data come in stronger than expected. US markets will be closed for the next two sessions for the Thanksgiving holiday.
Four of the eleven sector groups of the SP500 closed higher overnight, with Real Estate and Healthcare the strongest performers. Discretionary and Technology stocks saw the most selling. Most other sectors were fairly flat.
Techically, the SP500 roughly held resistance around 6,000 points. It is now at a key decision level, either it will break above or down from this level, which will suggest the next directional move. Should it fall, previous support at 5,880 is the likely target. Should it rise, its hard to say where it may head to.
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