The XJO is expected to open near 6150 this morning, following negative leads from the U.S and a strong AUD. This is a break of the consolidation pattern we have been trading in for the past week at roughly 200. If we hold our losses during our session today, the market will look bearish to 6100.
The SP500 is trading at key support, and if they manage to hold and bounce, this will likely help our market from falling too far in the short term. In addition, local news remains positive which should help keep us buoyed.
Expect volatility to continue across markets as we edge closer to the U.S election.
The XJO is expected to open lower following negative leads from the U.S last night. Their futures sit flat to green, and if they remain so, may help keep our market falling harder through our session today. We are expected to open near 6150. This has us breaking out of the consolidation pattern we have been trading in at 6200 the past week.
If we do not recover our expected losses on open through our session today, the market will look bearish to 6100. Beyond that, 6000 is the major level.
With the U.S election around the corner, the volatility being expressed by overseas markets and in turn ours, is expected to continue. Local news remains positive, which should help keep our market buoyed against excessive falls.
US stocks closed lower overnight, after a volatile session that saw shares reverse earlier gains to close around their lows. Financial news sites blamed the weaker close was due to markets realising that further stimulus was unlikely to come ahead of the November 3 Presidential election, although this has been expected by many investors for some time now. There was little in the way of economic data released in the US overnight, but we did see a smaller drawdown in oil inventories than expected, which caused oil prices to fall. Some tech stocks including Twitter and Facebook rose on the back of strong earnings reports. Despite this, Tech was the worst performing sector overnight, with every other major sector also closing lower.
Technically, the S&P 500 is still caught in no-man’s land between support around 3,400 – 3,430 and the all-time high resistance at 3,600. The index may have now formed a short-term downtrend over the past 10 days, but the support of 3,400 will have to break before further selling looks likely. A rise will have to top 3,600 before further gains will look possible.