The XJO is expected edge lower on open this morning following a flat session in the U.S overnight. Their futures have edged into the red.
Volatility is coming out of the market. We had another inside day yesterday but managed to hold the gains. We pushed through 7,850 and should retest it on open this morning. As the U.S continues to consolidate, our market should start to follow suit.
The uptrend line remains in play and comes in at just above 7,800. If we see further selling, then the uptrend line and 7,800 key support are the first targets. 7,900 all-time high resistance remains the next target to the upside.
US shares closed flat overnight with little news to report. Instead, prices are simply drifting around all-time highs seemingly awaiting further news and updates. It is a quiet week overall for news, though there will be the release of the Federal Reserve meeting minutes on Wednesday night; investors will look for clues as to the likelihood of rate cuts moving forwards. Should the minutes be more dovish than expected, we could see some further upside for prices, while a more hawkish slant could trigger selling. This week will also see NVIDIA report earnings and this could trigger movement in technology shares. Indeed, overnight we saw NVIDIA rise and this caused technology stocks to be the best performers overnight. NVIDIA will also report on Wednesday night.
Four of the eleven sector groups of the SP500 closed higher overnight, with Technology the only notable gaining sector. Financials saw the most selling, followed by Staples and Discretionary stocks.
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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