The XJO is expected to open lower this morning following a pullback in the U.S overnight. Their futures are flat this morning.

Yesterday we managed to push through key resistance at 8,300 and make fresh all-time highs. We managed to reach roughly 8,325, which will now be our new level of resistance. We should open just below 8,300, back underneath key resistance, but we will likely hold the uptrend line today which comes in at roughly 8,250.

We should continue to expect a slow gradual rise with spats of sidewards movement. One day things will turn, sooner or later, but for now any of the reasons that would justify a fall aren’t being recognised.

US Markets

US shares closed lower overnight, with each of the three major indices finishing in the red. Stocks saw selling after some mixed company earnings reporting, with disappointing reports from United Health and ASML triggering big selling in those two major stocks. ASML makes key machines for making computer chips, and their report triggered further selling in NVIDIA and other similar stocks. Still, US shares are incredibly bullish at the moment, so upwards movement could continue. However, prices are extremely expensive at the current levels, so weak earnings reports from the current earnings season could trigger selling.

Five of the eleven sectors groups of the SP500 closed higher overnight, with Real Estate and Staples the strongest performers. Energy and Technology stocks saw the most selling.

Technically, the SP500 broke above the all-time high resistance level at 5,770 last week indicating further upwards movement, though its hard to say where that movement may rise to. 5,770 is now likely to act as support to the downside.

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