The XJO is expected to edge higher on open this morning following a lacklustre night of trading in the U.S which saw their market finish practically flat. Their futures are mixed with the Dow strongly in the green but the SP500 flat.
Yesterday we confirmed roughly 8,900 as a key resistance. It represents our new all-time high which we created on Tuesday. We rebounded off it to give up most of the intraday gains, finishing only marginally higher than our open. This morning, we should retest it again.
Heading into the weekend, and with a relatively quiet night last night, it would be hard to expect much from us today. It seems likely we simply hold resistance once again and wait for next week.
US Markets
US shares were flat overnight, with some selling around the US producer prices data. This data is similar to the headline inflation numbers (CPI), except it measures the prices paid by producers instead of consumers. This data is often seen as a leading indicator for consumer prices (inflation). The data came in much stronger than expected, likely due to Trump’s tariffs. With this data, investors are worried that the upcoming rate cuts they have predicted might not be ‘done deals’. Regardless, the momentum remains to the upside, and even this data overnight was not enough to send markets lower to any notable degree.
Four of the eleven sector groups of the SP500 closed higher overnight, with Financials the best performers. Most sectors were fairly flat, with Industrials and Materials stocks seeing the most selling.
Technically, the SP500 recently broke through the all-time high resistance at 6,400. With a break of this level, further upside will look likely. Despite stalling out over the past few sessions, the index still looks technically bullish, though its hard to say where the upside target is; perhaps 6,500.