The XJO is expected to edge higher on open this morning following a rally in the U.S overnight which saw their market return back to all-time high resistance.

Yesterday we managed to crawl higher, but we arguably held resistance at roughly 7,700. This morning we should clear it, albeit meekly.

We continue to trade in a fashion where we see a spout of volatility, which immediately leaves and is met with indecisive movement.

The next resistance is 7,750, and we should assume it is the next target for our market and for the uptrend to continue.

US Markets

US shares closed higher overnight, with prices closing around all-time high levels, though not clearly breaking higher. Markets returned to their highs ahead of tonight’s key Federal Reserve meeting, with the ‘Fed’ likely to signal the timing of future rate cuts. Expect he market to either break higher or lower based on the outcome of the meeting. Overall, US economic data has been consistently more inflationary than expected, which lead to a more hawkish Fed at this meeting. Other US economic data overnight came in mixed, with more housing starts than expected, while the Atlanta Fed GDP now forecast was slightly lower than expected.

Ten of the eleven sector groups of the SP500 closed higher overnight, with Energy the strongest performer after further Ukrainian drone attacks against Russian oil production. Utilities and Discretionary also fared well. Communications were the only stocks to close lower on average.

Technically the SP500 closed right around the all-time high resistance at roughly 5,180 overnight. The index is also holding above the longer-term uptrend line that has formed for the past four months. This leaves the index inside a ascending triangle. We will need to see a break of the triangle in either direction before a directional move will look likely.

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