US markets pushed higher Friday again finding fresh all-time highs. The Nasdaq rebounded but struggled to hold onto gains indicating that appetite for this space may not have returned just yet. The SP500 and Dow both closed on their highs.
Commodities continue to run higher, With Copper and Iron Ore continuing to push into all-time highs. Demand is already growing in this space with many economies looking towards infrastructure spending to recover their economies.
Many investors are worried about adage of selling in May, with the concerns exacerbated by the strong bullish run that markets have enjoyed. May is sometimes a weaker month, although that is not always the case. We will have to continue to monitor technical signals for signs of a pullback and be quick in adjusting positions if key levels of support break; until that happens, we have to assume that the upward movement will continue.
Locally selling in some sectors is offsetting strength in others which is seeing the XJO continue sideways. The index is pushing right into the edge of an ascending triangle at the key 7,100 level. We are likely to see a strong break this week. Materials are likely to run with strong Commodity prices.
Australian Outlook
The XJO is expected to edge higher on open this morning following a strong night in the U.S. The volatility we experienced the past couple of days puts us back at 7100 resistance level, which we should go on to test once again today. U.S futures have edged into the red this morning and if they remain so, it is likely we hold 7100 going into the weekend.
US Markets
US shares pushed higher on Friday, with the major S&P 500 and Dow Jones 30 indices reaching fresh all-time high levels. Prices were boosted by weaker than expected US jobs data, which encouraged investors that any change to interest rates and central bank bond buying is still a long way off; unemployment came in higher than expected at 8.1%, while there were around 700,000 less US jobs created in April than expected.
Prices finished right around the daily highs, which is a good sign for the bulls from here. Every major sector closed higher on Friday, with Energy, Materials, and Industrials the strongest performers, while Consumer Staples and Utilities saw the flattest moves.
- US shares tumble as bond yields soar, XJO to drop - February 22, 2023
- US market drops with hawkish Fed comments - February 17, 2023
- US market grinds higher, XJO to follow - February 16, 2023
Leave a Comment
You must be logged in to post a comment.