Overnight the US markets had a solid night, the Dow Jones and Nasdaq closing up 1.6 and 2.2% respectively on the back of some positive earnings results and economic news. It was good to see our market follow suit in a positive way, putting on 1.8% for the session with a slight rise in volume. The XJO closed up 81.6 points and now faces some resistance just overhead. It would certainly be nice to see this broken with some conviction. For now, however, we are still in a downtrend, although some follow through over the next day or two may see the daily trend change to up. As you would expect on a strong day like this, we were shaken out of a few short trades today and triggered several long setups. Given the lack of follow through from many breakouts for a while now, we need to remain wary of reversals. Nasdaq futures are up 3/4 of a percent at the time of writing, following more good earnings news after market close in the US. We’ll know in the morning if the momentum continues.

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