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Wall Street set for record open

Summary:

  • US stock markets set to open at record highs 
  • Senate narrowly (51-49) pass GOP tax bill 
  • US500 and US30 make new all-time peaks; Will the US100 follow?

The news over the weekend that the eagerly anticipated Republican tax bill managed to squeeze through the Senate by a marginal majority (51-49) has boosted risk assets with all 3 major US indices (US500, US30, US100) higher on the day. 

The US cash session will begin at 2:30 when the opening bell rings out on Wall Street, and both the S&P500 and DJIA are set to post all-time highs according to the respective futures markets (US500 and US30 on xStation). 

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 The US500 gapped higher to make a new all-time high last night at 2662. The market has now fully recovered the sharp declines seen during Friday’s session. Source: xStation

The S&P500 is the world’s largest stock index and the US500 has made a new record high of 2662 overnight. Friday saw a swift decline in the market when news broke that Fynn would be willing to testify against Trump regarding Russian collusion, but the declines were subsequently pared into the close.   

The market gapped sharply higher on the open last night by around 20 points and made the new record peak in the first 30 mins of trade. This is an area to watch going forward to see if it can hold as resistance with a break above 2662 paving the way for further gains. On the downside two levels to keep an eye on could be 2649 - the level price broke lower from on the Flynn reports - and 2642 - the closing price on Friday.

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 The US100 has lagged its peers lately and has failed to make a new all-time high despite the positive tax bill news. Source: xStation

The US30 has also surged into record territory with a high of 24508 after last week the index moved above the 24000 handle for the first time. The US100 has been something of a laggard in recent trade after outperforming its peers year-to-date and this benchmark remains below its previous peak at 6425. Can the market catch up with the US500 and US30 in making a new record high or could a reversal signal below 6425 provide a nice shorting opportunity? The coming sessions could well determine the answer. 

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