The XJO is expected to rally on open this morning following a strong recovery in the U.S overnight. Their futures are mildly in the green.

The U.S bounced off their previous all-time high resistance as support, and our market is set to do the same this morning. Yesterday we reached practically reached 7,900 intraday and rebounded off it to retake almost half the daily losses. This morning we should open near 8,000. If U.S futures don’t give us stronger leads, it seems reasonable to suggest we price in most of the day’s gains on open.

The recent pullback looks short-lived for now, though our market remains overbought by short-term indicators. Without much news around, markets may continue their underlying trends and move higher. The next big news release is on Thursday night with U.S GDP, so it would not be surprising to see a small recovery, or at least consolidation by then.

US Markets

US shares jumped higher overnight, with each of the three major indices closing in the green. The gains were led by large technology stocks, leading the NASDAQ to be the best performer, followed by the SP500 and with only modest gains in the DOW JONES. The gains came ahead of tonight’s tech earnings reporting, with Tesla, Google, and many more reporting tonight. Prices are currently very elevated, so results will need to be strong to keep markets chugging higher. In general, US investors have everything they could ask for, with inflation coming under control and with interest rates expected to be cut soon. Still, with prices very high, shares could be sensitive to any news or developments from here.

Nine of the eleven sector groups of the SP500 closed higher overnight, with Technology and Communications the strongest performers. Energy stocks saw the most selling. Most sectors saw modest buying.

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