The XJO is expected to open lower this morning following a lacklustre night of trading in the U.S which saw their market finish practically flat. Their futures are also flat.
Yesterday we managed to hold gains, finishing firmly in the green at roughly 8,700. This morning, we are set to undo all that good work, with an expected open near 8,660 at time of writing. Key support seems to be roughly 8,650, which roughly represents the previous all-time high resistance give or take. It is a level our market has listened to as support twice now in this recent consolidation and we should expect the same today.
For now, it seems we are range bound. The U.S market looks tired, making meek gains in a slow trudge higher. A catalyst seems needed to shake markets, which could come this week from the Fed tomorrow night, or from a slew of earnings reports or macro-economic data releases this week.
US Markets
US shares stalled at all-time highs overnight, with not even the optimism around the US-EU trade deal able to advance US shares. There was a lack of major news otherwise overnight, but that will change tonight, with a resumption of the earnings season and with some economic reports. The biggest events of the week will occur with GDP and a FED meeting on Wednesday night. Don’t be surprised to see a fairly flat US market again tonight and then movement on Wednesday night based on the outcomes of those events.
Only three of the eleven sector groups of the SP500 closed higher overnight, with Energy the best performer. Utilities, Materials, and Real Estate saw the most selling.
Technically, the SP500 recently broke beyond the previous all-time high resistance at 6,300. This indicates further upwards movement, though the market did stall out at 6,400 points overnight, which may now be the new resistance level. The previous resistance at 6,300 is now likely to act as support.
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