The US bounced back hard from a disaster open as major indexes flushed and trapped sellers at open off support levels.
The SPI200/ASX200 both bounced back into resistance levels holding minor higher levels as sellers were squeezed. Expecting to see some bargain hunting on open although do not expect to see a big bounce in the ASX. Looking at 7083 (ASX200) and 6992 (SPI200) to see how sellers react. The DOW saw a ‘V-shaped’ recovery off 34510 as shorts were trapped and squeezed off the open. Level to watch is 34510 to see whether sellers again defend or stand aside. The Hang Seng fell over in European trade after holding a lower high during the Asian session. Price may test into 24530 on the open so that is the key level. If we see a flush lower on open, watching for a higher low and short squeeze or 23950 to come under fire. The Nikkei ended the US session at a minor level 27365. Expecting a flush higher and then will see whether sellers start to cap the rally looking for a squeeze lower. If bulls are strong, may see a push into 27630…but will want to see a flush lower first.
Cryptos managed to rally along with the bounce in US Indexes. Prices remain under pressure so will be watching both Ethererum and Bitcoin for a lower high and push into support levels or a squeeze higher off a higher low.
Spot Gold is generally ranging at the moment sucking in buyers on inflation talk but holding below 1843. After testing 1830 and holding, I am watching for a higher low to hold for a potential break above 1843.
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Hang Seng Index