• US indices trading higher ahead of cash open
  • Possible de-escalation in Syria boosts stocks
  • Blackrock moves higher in pre-market on solid earnings

US stock indices are in a fairly upbeat mood today, with gains seen in all three major benchmarks (US500, US100 and US30). The following tweet from US president Donald Trump seems to contradict his inflammatory remarks on social media yesterday, with the “not so soon at all” leading many to believe that an attack may now not be imminent.  

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 Donald Trump took to Twitter to update the world on the latest in Syria in what could be seen to be a backwards step in terms of aggression with the “not so soon at all” phrase suggesting a strike may not be imminent. Source: Twitter

The US500 has recaptured the 2650 level and is now approaching what could be seen as a key test to any further advances. Firstly a falling trendline from the high seen at the end of last month looks set for a retest and above there the prior swing levels of 2672 and 2678 could be worth keeping an eye on. Any of these could be conceived as a possible neckline in an inverse head and shoulders setup with the head coming in at 2551. A clean break above these levels would be a clear positive signal and could pave the way for a larger rally going forward.  

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 The US500 is trading higher and close to retesting several prior resistance levels. A clean break above them would pave the way for a sustained push higher. Source: xStation

Turning our attention to individual stocks, Blackrock is called to open higher after posting its latest results. The world’s largest asset manager reported higher than expected first-quarter profits with an EPS of $6.70 per share above the average analyst forecast of $6.39. Total revenues rose 15.9% to $3.6B compared to the same quarter in 2017, while expenses rose less, by 9.8% to $2.2B. Assets under management on 31 March were $6.32 trillion. 

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 Blackrock could be set to break out of a falling channel that has contained price for the past couple of months after reporting better than expected results. Source: xStation