The XJO is expected to open higher this morning following a small move higher in the U.S overnight. Their futures have also edged into the green.
The U.S managed to hold their gains and once again flirt with their all-time high resistance. Our market is expected to somewhat follow suit, but we may not exactly reach our all-time high resistance. Volatility has left markets for now, and so we shouldn’t expect much from our market today.
There is an NVIDIA report as well as the Fed meeting minutes tomorrow morning after U.S close that seems likely to affect their futures and thereby our session tomorrow. It is unclear whether this will bolster markets or lead to profit taking. The sentiment has been bullish on the back of interest rate cut optimism, but the Fed minutes or the NVIDIA report could cause short-term shocks. For now we expect markets to remain bullish to sidewards, and we would expect our market to eventually create fresh highs.
7,900 is the all-time high and the next key level. 7,800 is the next key support. There is also a short-term uptrend line that comes in at similar levels. Beyond that we have the 50 day MA at 7,750 and key support at 7,700.
US Market
US shares closed moderately higher overnight, with prices closing at roughly the all-time highs registered across the past few days. There was a lack of major news overnight and instead markets were pushed higher by strength from NVIDIA ahead of its earnings release after US markets close tonight. The other major event for this week will also come tonight with the release of the Federal Reserve meeting minutes; investors will be looking for clues as to the direction of rates moving forwards and we could expect to see movement after minutes are released. For now, prices have been pushing higher after the lower than expected US CPI data, which suggests that rate cuts are back on the table in the coming months.
Seven of the eleven sector groups of the SP500 closed higher overnight with Utilities and Staples the strongest performers. Energy stocks saw the most selling. Most other sectors closed fairly flat.
Technically, the SP500 broke into fresh all-time last Wednesday, eclipsing the previous resistance around 5,260 index points. With a break of this level, we should see further upwards movement, but its hard to say where this could stall given these levels have never been seen before. To the downside, the previous resistance around 5,260 is likely to act as support.
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Advisor at TradersCircle and Emerald Financial
Joining the team at TradersCircle in 2011, Karo has extensive experience in both investing education and derivatives trading.
Latest posts by Karo Cornips (see all)
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