Summary:

• US indices set for record cash open
• Bullish equity sentiment seen in Asia and Europe
• US500, US100 and US30 all hit record highs

It’s been a bullish start to the week for stock markets with Wall Street set for a record open. The upbeat sentiment was evident throughout the Asian session with the JAP225 rising by more than 1% and this positivity has spread throughout the European morning with the DE30 and UK100 hitting 5-week highs.

 All European indices barring the HUNComp are higher on the day with several gains in excess of 1%. Source: xStation

Turning our attention to the US, the US500 is now just 10 points from the 2700 level. The market has rallied by 40 points since the early hours of Friday morning. Price ended last week at a record high closing level and the market gapped higher on the open last night and has made a steady grind higher from there.

 The US500 has rallied 40 points in the last 2 sessions and is now not far from the 2700 handle. Source: xStation

The US500 is currently higher on the day by around 0.5% and is in fact lagging the other two main US large-cap indices the US100 (+0.68%) and the US30 (+0.73%). The US30 clearly exhibits the clean uptrend seen in US equities since the election last year when the market made an overnight low of 17420. This represents a 42% gain or more than 7400 points! Most oscillators such as  stochastic or RSI indicate the market is overbought but in the absence of any reversal signals the path of least resistance remains higher and the uptrend is firmly intact. 

 The US30 continues to rise higher and is now not far from the 25000 handle. RSI reading of 80.4 indicates overbought conditions but the market remains in a clear uptrend. Source: xStation