The XJO is expected to edge higher on open this morning following a flat session in the U.S overnight. U.S futures are also flat.
Yesterday was largely mute, with most of the selling having happened on open. We only managed to marginally retrace some of the losses after bouncing off 8,250 key support intraday.
The U.S is tracking sidewards at the top of the range, and it is looking like it is running out of steam. Don’t be surprised to see markets remain quite leading into the U.S CPI reading Wednesday night.
US Markets
US shares closed flat to higher overnight, with shares continuing higher on the post-election bullish momentum. Movements were fairly muted however, and things do look to be running out of steam somewhat after several days of strong gains. Indeed, prices on average closed below their opening levels overnight. There was a lack of major news and economic data, and that will again the case tonight. However, on Wednesday night we will see US CPI (inflation) data for October, and that will be very important for markets moving forwards. Investors want to see inflation continue to fall, so should it come in higher than expected, we could see a disruption to the upwards movements.
Six of the eleven sector groups of the SP500 closed higher overnight, with Discretionary and Financials the strongest performers. Technology and Real Estate stocks saw the most selling.
Overnight the SP500 again closed at a fresh all-time high. It broke through the previous peak at 5,870 after Trump’s election and is continuing higher. Its hard to say what will happen from here, as things are mostly moving on fundamentals, but things technically look further bullish.
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