Wall St. set for record open

Summary:

• New ATHs for US500 and US100

• US30 testing prior peak

• Initial jobless claims beat forecasts

Stock markets are back in a bullish mood as the de-escalation of tensions between the US and Iran means that despite some volatility in the past week, indices are once more pushing higher. Trump’s press conference yesterday was seen as pivotal and the decision to not adopt a more aggressive stance suggests that despite the hyperbole in recent days, the situation remains under control. Both the US500 and US100 have surged to their highest ever level and they are also set to have their highest ever open when the cash session starts at the bottom of the hour.

The US100 printed a large bullish hammer yesterday and the market remains in a bullish mood, chalking up a new all-time high ahead of the cash open. The RSI is in between 70 and 80 to suggest moderately overbought conditions and there’s also some negative divergence seen in this indicator. However, in the absence of any reversal signals the path of least resistance remains higher. Source: xStation

The US30 is lagging behind the other two large-cap US benchmarks but is now probing its previous record peak around 28890. A clean break above here could see this market join in the breakout rally seen in the US500 and US100. Source: xStation 

• On the economic calendar today there’s not too much of importance with the weekly jobless claims the biggest release. A print of 214k was better than the 220k estimate while the prior was revised down by 1k to now stand at 222k for good measure. Similar to yesterday’s ADP this is a solid reading and raises expectations ahead of tomorrow’s NFP report.