The XJO is expected to rally on open again this morning following another night of gains in the U.S which saw their market continue their move into fresh all-time highs.

The pump remains steady overseas and our market will reluctantly be dragged higher with an expected open just shy of 8,300. This is a key level of our market and represents roughly our all-time highs. U.S futures are flat, and if they at least hold ground we may feel comfortable sticking our head through to show commitment to a break if the U.S can maintain their position.

Otherwise, we may cynically hold resistance to wait and see if the U.S can indeed push higher, as it is looking due for some profit taking in the immediate term.

The uptrend line remains steadily in play since our lows back at the start of August. We have been grinding along it for the past week or so. Beyond that, key support remains the bottom of the range at roughly 8,100.

US Markets

US shares continue to push strongly higher, with the SP500 and DOW JONES reaching fresh all-time highs overnight. Shares continued higher after last week’s break above the all-time high on the SP500 and did so overnight despite no major news or events. This week will be mostly a quiet week for US economic news, with nothing major reported until Thursday’s Retail Sales numbers. However, the week will see plenty of earnings reporting, which restarts tonight with many big name companies. With prices at very high levels, earnings are expected to remain strong this season, so we will need to wait and see if that is the case.

Ten of the eleven sector groups of the SP500 closed higher overnight, with only Energy stocks closing in the red. Every other sector closed higher, with Technology and Utilities stocks the strongest performers.

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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