The XJO close out the day higher after another whippy session, buying in match out saw the XJO jump and close at the 6700 resistance. With the futures up only slightly today, we will likely see that level hold. Technically, the XJO is now in a short term uptrend and is trading in the edge of an ascending triangle between the uptrend line/support and resistance. If we break to the upside we could see the XJO go back to around 6,750. If it breaks, 6,400 is the next key support level. The short term indicators are looking overbought.
Ramsay Health Care Ltd (RHC) declined -4.6%, following the news that Paul Ramsay Foundation has entered into a block trade agreement with two financial institutions to sell 22m ordinary shares of RHC, representing ~10.9% of the issued share capital. Nufarm Ltd (NUF) was down -3.6%, after Macquarie Bank downgraded the recommendation on the stock to Neutral from Outperform and lowered the price target to A$5.30 from A$5.77.
US markets edge higher. The Dow closed 33.98 points higher (0.13%) and the S&P 500 was up 7.72 points (0.26%). Most other major markets closed mixed.
The S&P 500 edged higher overnight as investors continue to speculate on the FED rate announcement. It is also expected that oil output from Saudi Arabia will be back online by the end of Septemeber. US markets are whipping sideways close to all-time high resistance levels, as we await the FED decision. It is widely expected that they will cut rates, if they don’t we will likely see markets come off a bit as they seem to be addicted to easing monetary policy and stimulus. Technically, the S&P500 is still in a short term uptrend and testing resistance at 3,027 which is the all-time high resistance level.
XJO Implied Volatility fell -2.83% and closed at 12.246. The US volatility was up 4.85% and closed at 14.44%.
Crude pulled back overnight as news emerged that Saudi Arabia will bring their full production back online by the end of the month and have enough in reserve to meet obligations.
Gold is holding above the 1,500US support.
Iron Ore struggles to push back above the $100US level and is selling off again.
The Aussie dollar recovered after yesterdays pull back, but is still holding resistance at 69.00cents US.
Markets seem to be treading water as they await the FED decision. News around Trade has calmed for the moment as well, so it will be the FED tonight which will give the next catalysts to markets. If they and re-ensure markets there is more to come, we will likely see them break into all-time highs. If they wait, we could see a reasonable pullback.
Today’s trading. In Australia, data on Westpac leading index to be published. In the U.S. data on MBA mortgage applications, building permits and housing starts is anticipated.