The XJO is once again expected to open higher this morning following a continued rally in the U.S last night. U.S futures are also in the green.
Yesterday we rallied back to key resistance at roughly 8,300 and the 50 day MA. We rebounded from them both intraday, giving up practically all the session’s gains into the close. Though we broke the pennant pattern recently, we are reluctant to make too much headway.
This morning we should retest key resistance at roughly 8,300. With the U.S trading above their own 50 day MA, but rebounding from key levels intraday last night, it wouldn’t be surprising to see our market hold around here. Furthermore, the stochastic are dipping into overbought territory and we are trading near the top of the Bollinger bands. If we are to see continued sideward movement, we should expect a turnaround soon.
If we can manage to crack through 8,300 in a meaningful way however, then our market will have just followed a higher trough with a higher peak, indicating the beginning of a short-term uptrend. What seems most likely though is we hold 8,300, the same as the last peak, and continue tracking sideward.
US Markets
The U.S closed higher once again overnight. Comms saw the most growth of just over 2%, and tech continued the charge with just shy of 1.5% as they continue to retake lost ground from last week. On the other end, Consumer Staples, Utilities, and Real Estate all fell by about 1%.
The SP500 rallied all the way up to key resistance at roughly 6,000, which is also where the countertrend line comes in. They rebounded from these levels intraday to give up roughly half of their session’s gains into the close. Once again, they finished near the 50 day MA – a point of comfort for their market as they track to the point of the pennant pattern. Furthermore, they retreated back to the rough mean of the Bollinger Bands, and the stochastic look practically the same.
Want to continue reading?
This is only an excerpt from todays TradersCircle Members Morning Market Update and doesn’t include the key data and charts our traders are keeping an eye on every day. Become a member today for this plus full length mid-day and end of day updates, trade recommendations, trade group webcasts, and much more!