The XJO is expected to open flat this morning following an indecisive night of trading in the U.S which saw their market finish flat. Their futures are also flat this morning.
Markets continue to track sideward. Yesterday we pulled back from the top of the recent consolidation range which comes in around 7,300 to once again hang around 7,250 . It appears we also may have rebounded off the downtrend line.
With little to no leads this morning, we shouldn’t expect anything much from our market today, unless U.S futures decide to go for a run during our session.
US Markets
US shares closed mixed overnight, with the tech-heavy NASDAQ closing higher, while the value-based DOW JONES closed lower, the broader S&P500 was flat. This came as President Joe Biden and Republican leader Kevin McCarthy were set to meet on the debt ceiling after US markets closed. There were also signals from two Federal Reserve members that they foresee more interest rate rises from here. There was a lack of economic data, but that will change tonight, with the release of Services and Manufacturing PMIs, which are expected to show growth slowing for the US economy. Usually talk of more rate rises, as well as the approaching debt ceiling, would be negative for markets, but US indices are showing great resilience by continuing to grind sideways to higher with these events.
Six of the eleven sector groups of the SP500 closed higher overnight, with Communications and Real Estate stocks the best performers. Staples, Energy, and Materials stocks fared the worst.
The SP500 again held below the resistance at 4,200. This means it is staying inside the sideways consolidation range of 4,050 to 4,200 and we have to expect further sideways movement unless 4,200 breaks. Should it break above 4,200, we will be seeing an uptrend for the SP500, with a possible upside target of 4,300.
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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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