The XJO is expected to rally on open this morning. The U.S was closed overnight but their futures closed mildly in the green.
Yesterday we opened at key resistance of 8,350. We managed to hold our gains, but were unable to push through, likely unwilling to make too much headway with a closed U.S. With U.S futures closing in the green however, our market likely feels comfortable breaking through 8,350 this morning, with an expected open of roughly 8,385. The next key level is roughly 8,400. It seems likely we test it today, but unlikely we push through – especially considering U.S futures are flat this morning.
Our expected open does feel like a break in anticipation of a strong response from the U.S to Trump’s inauguration. He is already making waves. Over the past week or so, many believe he is responsible for both the hostage deal in Israel and the reinstatement of TikTok, and he is expected to sign a some 200 executive orders in a live spectacle over the next 24 hours. Regardless of the harm or good he may do, or the optics surrounding his controversial presidency, it certainly feels like volatility could remain high. For now though, as always, a new presidency brings a bull market. For how long though is hard to know.
US Markets
The U.S was closed overnight, however their futures closed in the green. The SP500 futures closed about 10 points higher, indicating that it may be ready to break the key resistance at roughly 6,020. Their futures will continue to trade today and help shape their open tonight. This morning they are flat.
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