Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
Tech continues to come under pressure and weigh on broader markets as traders assess where we are at with the inflation picture. The USD continues to rally and pressuring bond yields higher while safe havens move lower. Focus is now back on inflationary pressures as Ukraine takes a back seat for now.
Note : The price action of late has been very choppy and reactive with levels being flushed constantly.
The SPI200/ASX200 were both contained during the European session before being sent lower in US trade. Prices are hovering above support levels so may look to flush into support on the open. Both saw a squeeze higher into the close but I expect that was just short covering ahead of the days open. Will be watching to see if any rally on open gets heavy and sees a lower high build. The DOW lagged the SP500 and Nasdaq so may look to squeeze lower off 33025 today. Price is holding a lower high at 33357 but has pushed up off 32840 into the close. Will need to see buyers fail to push price higher and sellers hold a lower high for a sell. If Asian markets start to rally, then expect DOW to grind higher. Hang Seng remains under pressure with the minor anchor to the move down holding at 19400. Price is in no mans land at this stage and could easily flush higher on open to drag in some buyers before another push into daily support around 18780 and below. If price does flush lower on the open and starts to hold, then will be looking for a squeeze on sellers and move up. The Nikkei held below 25480 through the Asian market session yesterday and then broke lower off the level from the start of US trade. Price did find some buyers off 25205 so the key level on the open will be around 25330. Watching to see if price wants to hold 25330 and move lower or continue to rally so the initial opening drive will be important.
Cryptos continue to find sellers as they hold lower highs especially on Bitcoin and Ethereum. Ethereum initially moved up off Asian market lows but failed at 2609 during the European session. Watching to see if there will be a bounce into 2557 and then a lower high hold. Bitcoin also rallied off earlier lows and looks ready to flush higher into 39500 or even 40270 from current levels. For now the pressure is down so I will need to see a minor higher low form.
Spot Gold has been a steady grind lower off the 2003 level after failing at daily highs. Expecting this trend to continue unless some news event can bring in the bulls for a spike higher…in which I will look for a higher low. Safe havens are moving down so Gold is under pressure from the rising USD.
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Hang Seng Index