The SPI200/ASX200 was beaten down during Fridays day session and then again in the overnight session. The ASX200 will open weak as fear grips investors but there is a feeling that the new Omicron is not as bad as first thought so price action may see some bargain hunting. Expecting to see a flush lower and then will be watching for a higher low The DOW is being held down at 35120 after taking a beating also. A lot of the move came in a thin market so will be watching to see what happens in Asian trade to see if there is more downside or a squeeze on sellers. The Hang Seng move right into the 23700 area which is previous lows from Sept/Oct. If markets feel that there has been an over-reaction then there is a possibility for a major short squeeze. The Nikkei is much the same boat as the Hang Seng with the potential for a short squeeze off 2800…potentially after an early flush.
Note : Will be worth watching the open as there is a lot of fat either way. If fear grips markets again, then there is a lot of unwinding of risk that could still come. If traders feel it is overdone (as news is suggesting the new variant is ‘not so bad) then, a squeeze higher is on the cards off higher lows.
Cryptos were sold off and then held lows over the weekend. Will be watching for a short squeeze and some bargain hinting buying early if Share indexes pop higher. Ethereum is starting to hold up off 4058 and Bitcoin is holding off 53650.
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Hang Seng Index