The SPI200 took another big hit in overnight trade so we would expect that there may be some bargain hunting on the ASX open…just need to see some confirmation first. At the least there may be a squeeze of sellers for a pop…again will need confirmation off a higher low. Expect a flush on the open. The DOW pushed below the 34555 level to clear out some stops so the question is…continuation lower of BTFD buyers provide some support as they have many times before. That said, there will come a time when markets just keep squeezing lower as there is a LOT of fuel stacked long…need to manage risk accordingly with trades. The Hang Seng pretty much gave back the gains from the early rally up into 24660. Price is under pressure but may just trap sellers prior to another run higher on the open. The underlying index is not so clear today and bullish momo is easing so we could easily see a break down today as yesterdays bulls are squeezed. The Nikkei wants to flush lower into 29470 (is current pushing lower now). This will be a bad scenario for stock traders waking up this morning to the drop in the futures market from overnight…down around 700 from 4pm close.
Cryptos again edged lower but was well contained and a steady selloff. Prices remain in a down trend into previous lows so watching to see if bulls can again provide buying support.
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Hang Seng Index