The XJO is expected to open flat this morning following a mixed night of trading in the U.S which saw their market finish flat after regaining most of their intraday losses. Their futures are also flat also. It seems markets are looking to take a break and enjoy their Easter too.
The past few days have seen us grind sideward as we wait and see what the U.S does at the top of the recent trading range. 7,200 to 7,250 is the both resistance and support, and defines a very narrow consolidation range. This is also roughly where the 50 and 100 day MA comes, and it doesn’t seem likely we will want to venture too far from them heading into the long weekend.
US Markets
US shares closed marginally lower last night, after regaining most of their intraday losses. Their job numbers for February last night (JOLTS Job Openings) came in worse than what was expected. This likely helped keep their market elevated as it gives the Fed more reason to taper interest rates.
Sectors were mixed overnight with only four of the eleven sector groups of the S&P500 closing higher. Utilities, Energy, and Health care only managing to record notable gains. Consumer discretionary, industrials, and IT stocks saw a fair degree of selling. And there wasn’t much action in Staples, Financials, Materials or Real Estate.
Last night the SP500 clearly wanted to hold support. The support is somewhere around 4,050 to 4,100 depending where you draw it in. There is also an uptrend line that roughly comes in at 4,050 that would also likely help keep their market elevated if further selling comes in. Ultimately, short-term indicators put their market in the overbought category. Consolidation over Easter will help cool off markets however.
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Sam Green is the Portfolio Manager at Emerald Financial, whilst also being an Equities and Derivatives expert for his clients at TradersCircle.
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