Charts Marked with anticipated price action entry setups in yellow.
Safe haven reversed some of the previous sessions gains as traders go risk on into shares. Inflation concerns still remain (as oil spikes) although some of the fear for Ukraine and US involvement has eased as sanctions on Russia increase. Powell down played any aggressive action from the Fed to contain inflation which brought a smile to bulls. Still the longer term bias remains down so we could see some selling pressure again tonight. US bonds are pushing lower as yields increase in anticipation of rate rises.
The SPI200/ASX200 were both ramped higher in overnight trade to add to the day sessions gains. Will be watching the 7173 level on the SPI200 and 7207 area on ASX200 for a reaction from sellers and a potential squeeze lower. The ASX will open up strong so may see some minor profit taking on a spike…bulls are regaining some control. The DOW moved up off 33490 in a strong move through US trading as many traders were trapped below the level from the Asian and European sessions. Watching 34055 resistance to see if sellers step in to lock in some gains and try for a squeeze lower ahead of the US session. Hang Seng found some support at the 22305 level before a rally to make back some of the days losses. Price is around a messy level at 22495 so could go either way on the open. Watching the initially reaction before looking for a trade. If price pops up, then expecting some flow lower and visa versa. The Nikkei worked its way higher finding some resistance into the close at 26682. This is the key level for me on the open to see whether price will extend to 26805 and higher or fade lower for a squeeze on buyers.
Cryptos managed to consolidate around previous sessions highs with bitcoin hovering around 44550. Same plan for the previous session…watching to see if sellers come into the action to lock in some gains from the rally up off 38850. Ethereum is much the same as price looks a little heavy off 3036.
Spot Gold gave up some of the previous rally as safe havens went out of favour on the risk on move from the major indexes. Watching to see if 1910 can hold for a higher low but expect that this will depend on share markets and any news flow regarding Ukraine.
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Hang Seng Index