Trading Plan for the days action 3/02/22

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In the US, ADP Non-Farm Employment data came out a lot less than expected which gave the Indexes a lift on the open. It is a pre-cursor to the main number on Friday although can get it wrong a lot….either way the bulls liked it.

The SPI200/ASX200 both spend the overnight session being well contained around 6992 (SPI200) and 7088 (ASX200). When price does this, it will either ramp on open (overnight trade capped the action to keep ASX open low) or flush and selloff. The action looks buoyant to me so will be looking for expansion higher on the open. The DOW saw a slow grind higher into a key resistance area at 35670. Watching this level for only two scenarios…flush higher and then retest before a rally or flush and fade back below for a short off lower high. The Hang Seng is closed today. The Nikkei was largely range bound between 27423 and 27625. Will be watching for a fade lower off 27423 for a short off a lower high. If selling pressure is soaked up then look for another ramp off open through 27625.

Cryptos took a hit from the start of the US session with Bitcoin looking set to continue lower today. Watching Bitcoin for a lower high to hold and run through 36730 and lower. Ethereum flushed 2805 before dropping and also looks set to hold a lower high for a move down off 2697.

Spot Gold was very choppy from the start of the US session (when the quants turned their computers on) and managed to work up into 1810 before fading lower. Will be watching for a squeeze on buyers and push lower off a lower high.

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SPI200 Index