
The XJO is expected to open marginally higher this morning following a similar move in the U.S overnight. Their futures are flat.
Yesterday we finished marginally higher but overall continued the sidewards march as we wait for movement from overseas. It is a big week for reporting both locally and in the U.S, so there seems a decent chance we get that trigger soon. Tomorrow, we have local CPI at 11:30am (AEDT).
8,200 remains the local support we have been grinding along, and 8,250 remains the local resistance. On either side are key levels of support and resistance every 50 points.
US Markets
US shares closed higher overnight with each of the three major indices closing in the green. US shares rose after investors considered the events of the weekend a bit of a de-escalation in the middle-east, which also triggered a big drop in the price of oil. This week will be a massive one for data and earnings. The earnings reports will restart tonight with . Google (Alphabet) the first major cab of the rank, reporting results after-market tonight, with Microsoft and Facebook following suit aftermarket on Wednesday. Also on Wednesday night US GDP for the third quarter will be released and its uncertain what the market will be looking for in this result given that rising bond yields have troubled the market recently. Still, US shares continue to look bullish and with strong earnings expected to be released this week, its hard to see markets falling too strongly.
Nine of the eleven sectors of the SP500 closed higher overnight, with Financials the strongest performers, followed by Materials and Utilities stocks. Energy stocks saw the most selling. Most sectors saw slight gains.
Technically, the SP500 is holding above key support at 5,770, which was previously the all-time high resistance. It has also held below the most recent all-time high at 5,870, which is now acting as the resistance target to the upside. Should 5,770 support break, we could see a move back towards 5,670.
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