Trading Plan for the days action 12/01/22

No surprises from Powell and the US Fed which supported tech shares and therefore the overall market. Bonds bounced as yields fell to squeeze out short sellers as many were positioned for a more aggressive Fed on interest rates. Powell said that he and the Fed are determined to ensure high inflation did not become “entrenched.”

The SPI200/ASX200 rallied into resistance which I would expect to be broken on the open today as bulls come out to play. Will be watching for a push into 7385 on the SPI or 7482 on the ASX. May see an early flush lower to clear out some buyers off 7357 (SPI) and 7485 (ASX). The DOW rallied after Powell gave the all clear and pushed up into 36280. Will be watching this level to see if sellers defend it or whether there will be a squeeze higher into 36558. The Hang Seng extended higher into the close after being supported through Asian and Europeans sessions. Price will need to either flush higher into 24320 for a sell or lower for a buy opp. Generally expecting to see some bullishness and push higher as the underlying index gaps up and targets resistance. The Nikkei ended the session up into resistance around 28502 which I expect to see flushed on the open. From there, it will be whether sellers hold a lower high for a sell or whether buyers continue with the momo higher.

Cryptos had a long awaited kick higher in the US session. Bitcoin bulls will be looking for the 42600 zone to hold and push into 43700. Ethereum held 3105 and extended into 3275 where I expect to see a grind lower prior to another push up.

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SPI200 Index

ASX200 Index

DOW Index

Hang Seng Index

Nikkei Index



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