The SPI200/ASX200 spent most of the US session on lows before a last minute flush of short positions into the close. Expecting to see a flush higher on open to trap some buyers before a grind lower. If 7200 comes under fire early, we may see a rough day for the ASX. The DOW continues to hold below 34750 but did flush higher into the close Friday off 3.4250. Will be watching the two levels today for action. The Hang Seng was hit hard on the US open and never recovered. Price held the 23325 level which is expected to be flushed on the open. Another Chinese property developer default over the weekend may see some negative action on the HSI so on guard for a selloff. The Nikkei held below the 27790 area into the US close and saw buyers happy to soak up sellers into support around 27550. Watching the open to see how buyers and sellers react around 27790 and will be looking for an early squeeze higher.
Cryptos took a beating over the weekend with all major crypto pairs coming under pressure. Ethereum recovered a lot of the losses while Bitcoin remains under pressure. The sharp move lower was attributed to a margin position squeeze so I feel that it has taken a lot of the shine out of crypto as bulls have again taken a sudden beating. I expect the selloff will be tough to come back from so do not expect a lot of buyers to dive into the action yet.
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Hang Seng Index