The XJO is expected to open higher this morning a small rebound in the U.S on Friday. U.S futures are flat.
Despite the U.S shedding most of its intraday gains, our market is still responding positively to them holding both key support and their 50 day MA. We sold down below our own 50 day MA on Friday in anticipation of further selling from the U.S which was showing a break lower. With them instead holding, our market clearly feels comfortable returning to our own 50 day MA this morning which comes in at roughly 8,150.
Since reaching all-time highs mid-October, our market looks to be potentially forming a downtrend. We have formed a lower peak and trough, and likely to form another lower trough. Furthermore, we have broken the uptrend line that had been in play since the start of August. We could be witnessing a change in trend, but our market has returned to an equilibrium in the medium term and remains fundamentally driven. With U.S elections around the corner, a strong U.S, but issues at home, it is hard to say what will happen. It therefore stands to reason we continue to expect a sidewards to bullish market.
US Markets
U.S shared were mixed on Friday night. The SP500 managed to finish marginally in the green, only after shedding most of their intraday gains. They seem to be holding both a key level of support which comes in at roughly 5,700, and the 50 day MA. This puts their market at a sort of equilibrium in the short-term as they await the U.S elections Wednesday morning (Australia time). Even their short-term stochastic are near the middle of the range.
Most their sectors were fairly flat, with some marginally in the green, and some marginally in the red. Consumer discretionary was their strongest sector by far, up 2.4%. Utilities also stoon alone, closing 2.26% in the red.
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