The XJO is expected to open flat this morning, following a U.S market that managed to rally from their lows to finish marginally in the green. Their futures have also moved into the green this morning.

The U.S looks like it is willing to hold their underlying uptrend line by bouncing from it intraday last night. With their positive futures this morning, we should expect our market to retake some of yesterday’s losses.

Markets feel like they are teetering on the tip of a knife. We have shown both hesitance and resilience as we continue to track sideward near all-time highs. Both us and the U.S continue to trade in ascending triangles, and with the low volatility underpinning our moves, we should expect to make to the point of the triangle. Furthermore, don’t be surprised if the breaks are meek.

US Markets

US shares closed mixed but mostly flat overnight, with the SP500 and DOW JONES edging out small gains, while the NASDAQ closed lower. The NASDAQ saw selling with NVIDIA closing lower ahead of its earnings report, which came after market. The aftermarket earnings report was better than anticipated however, and NVIDIA is trading around 9 percent higher in aftermarket trading at the time of writing. Overnight we also saw the release of the Fed meeting minutes from their late January meeting, which suggested that there’s no rush to pivot towards rate cuts, with economic data continuing to come in strong. Following the strong report from NVIDIA, we could expect to see the NASDAQ and technology stocks fare well tonight, which could drag the other indices with them.

Ten of the eleven sector groups of the SP500 closed higher overnight, with Energy and Utilities the strongest performers. Technology stocks were the only ones to close lower on average, though expect this to reverse tonight.

Technically, the SP500 held the longer-term uptrend line, which sits around 4,960 index points, and it could bounce from this line tonight; this trend line would have to break before further selling looks likely. The index also recently held below the all-time high resistance level around 5,040 index points and the index would have to close above this level before further gains will look likely.

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