Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
Big bounce back across the board as Indexes rallied and risk assets retreated. Oil saw a major bout of profit taking along with Gold and Cryptos spiked…a general reversal of previous trends.
The SPI200/ASX200 edged its was higher in overnight trading to follow on from a good session yesterday. Price did retreat into the close to end below 7074 on the SPI200 and 7090 on the ASX200. The two levels will be key for me today as to whether we see another leg down or a higher low can hold below for a push higher. The DOW rallied into 33420 before buyers stalled into the close. For any buying opportunity, I would prefer to see a flush lower to clear out some buyers and a higher low hold. For a short, I will be looking for a minor lower high before a squeeze lower. Hang Seng fell over yesterday to trap some sellers before ramping back up to where it started into the US close. Key levels will be up around 21005 and 21110 to see if sellers once again step in to defend the levels. The move down on a daily basis has been strong so there is a lot of room for a major squeeze higher right from the open. The Nikkei has also been under pressure for a while so may see some good bargain hunting after the overnight reversal. Price action was choppy until the RTF at 24740 which led to a straight move up. I will watch for an opening flush into 25575 and a higher low long entry. Price may look to squeeze out some buyers prior to any further bullish action, so could see a minor move lower to work a short.
Cryptos rallied right from the start of the Asian market session and held the gains into the close of the US session. Bitcoin pushed up above 41250 so may look to retest back into the level before moving back up. Ethereum held below 2748 so an longs will need to see a higher low confirmed potentially off the 100 EMA.
Spot Gold played out to plan with a lower high towards the end of the Asian session and then a move lower into 1981 to squeeze out some buyers. Question is now whether enough buyers have been forced out for 1981 to hold and support a move back up…or whether there will be another leg lower through 1973.
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Hang Seng Index