The XJO is expected to edge higher on open this morning. The U.S was closed overnight and their futures may as well have been too, as they barely budged.
Yesterday our market paused, likely with the expectation of little to no leads from the U.S overnight. We opened higher, pulled back to sit flat, then bounced from key support at roughly 8,900 to finish marginally in the green.
Considering the strong volatility and whipsaw movement we have seen lately, it also wasn’t surprising to see our market take a breather. Today we are likely to do the same, unless U.S futures start moving.
For now, we expect 8,900 to hold. If it fails, the next key level is down at 8,750 to 8,700 – both key levels of support and roughly where the 50 and 200 day MA comes in.
It is another big week of reporting, keep an eye on key companies and consider pricing up strangles/straddles for Thursday/Friday.
Today we have the minutes from the last RBA meeting which could upset things. With no leads from the U.S, our market may have a whinge if the RBA indicates in their minutes that further rises are to come. Otherwise, we could rally if the market picks up more dovish tones.
US Markets
US shares were closed overnight for the Presidents’ Day holiday. US futures saw a modest rise in overnight trading, with the lower inflation reading on Friday helping to spur minor buying. This week will be fairly quiet for economic data until late in the week.
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