Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
US Markets rally from the open ahead of an expected interest rate rise from the Fed at the coming FOMC meeting. There may be some positioning ahead of the FOMC on expectations for a less aggressive Fed towards interest rates. Oil continues to push back down and ease inflation expectations while Biden blames US inflation on Oil, Putin and…anything else but stimulus.
Note : The price action of late has been very choppy and reactive with levels being flushed constantly.
The SPI200/ASX200 both initially pushed down into support on a weak European open but it was not long until the market rallied into positive territory to end on highs for the overnight session. Expecting to see a positive open on the ASX lift the SPI200 and ASX200 higher to extend on the overnight gains. The Anchors to the move up are 7101 for the SPI200 and 7104 for the ASX200. SPI200 March Contract will rollover to June tomorrow. The DOW initially flushed 32840 before it was ramped straight up to test into 33645 into the close. Price is extended ahead of the FOMC so I expect that this my be a bull trap before a selloff. Watching for price to flush up through 33645 and then squeeze out buyers on a move down. Hang Seng took a big hit through the Asian market session and then into the European open before bouncing back in US trade. Price pushed to the bottom end of the daily support to flush the level which may be a sign that selling is getting exhausted and we are in for a bigger pullback (rally). Watching to see if 18720 is tested on the open to trap some sellers before a squeeze higher. The other key level is 19045. The Nikkei also flushed a support zone before ramping higher. Price ended the session up into resistance around 25685 which I expect to trigger some profit taking on the open. Watching for a flush higher to trap some bulls before a selloff lower.
Cryptos were mixed with Bitcoin ending roughly where it started while Ethereum found more buyers to end higher. Bitcoin found sellers up around the 39500 area so may edge its way off the level today. If bulls can hold the level, then watch for an extension up to 40270 and above. Ethereum reacted lower off 2670 so watching this area for a lower high and move down off the zone.
Spot Gold continues to grind lower as safe havens take a back seat to inflation. USD continues to look strong and Bond yields push higher which is weighing on Gold. Watching to see if 1930 gets tested or whether price continues lower into 1886 support.
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Hang Seng Index