US markets return to all-time high, XJO likely to open at record

The XJO is expected to open higher this morning following a renewed rally in the U.S overnight. Their futures have dipped into the red however, and if they remain so during our session, we could see an intraday pullback from our highs.

We should retest all-time highs at roughly 7,850 on open. We may have a little more juice to push through and make fresh highs just before the long weekend. However our market has not been trading in a fashion where we see strong consecutive days. With yesterday managing to have a decent rise, it seems less likely we see a repeat today, especially with U.S futures stay in the red.

If we do indeed go on to see fresh highs, our market will often pullback soon afterwards. It is common to see a pullback either the next day or within a couple of days of making the fresh high.

The market will be closed, along with our office, both Friday and Monday for Easter. We encourage you to check your positions before heading into the long weekend. The U.S will be closed tomorrow night but will be open Monday night.

US Markets

US shares climbed overnight, with prices returning roughly to their all-time high levels from last week. There was a lack of major news and events overnight, so instead prices just jumped with the current upwards momentum. While the three major indices returned to their all-time highs, they did not exceed them, and it is likely they will wait for tonight and tomorrow night’s data, including the PCE price index (the FED’s chosen measure of inflation) and GDP growth, before deciding whether or not to continue higher. US shares have enjoyed their best first quarter since 2019, with their markets recording the fifth month of consecutive gains.

Every major sector of the SP500 closed higher overnight, with Utilities, Real Estate, and Industrials the strongest performers. Most other sectors also saw notable gains.

Technically, the SP500 returned to the all-time high of roughly 5,250 index points. It will need to break above this level before further gains look likely. Should it break above this resistance, its hard to say where it may head, as these levels have never been seen before. Should the index fall from here, the previous resistance and the longer-term uptrend line around 5,180 – 5,200 are the key levels to watch.

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