Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
Markets were up hard overnight in which was a strange reaction to the Fed raising interest rates and highlighting a more aggressive stance, with regards to fighting inflation, going forward. Markets are well and truly extended and I am concerned that we may see a delayed reaction to the news. Still if the momentum is up and the setup is there, then we have to trade the price action not guess.
Note : We will have to deal with some wide ranges today so risk levels may have to be wider than normal.
The SPI200/ASX200 spent most of the day session closed yesterday then tested and held the 7190 area. Prices later pushed back up to close just below 7266 so I expect to see 7266 flushed on the open and then will be watching for either failure back below and a move down or continuation higher off a higher low. The DOW spent the Asian and European sessions hovering below 34150 before breaking above the level and holding above into the US close. Price is extended and may need to squeeze lower before finding more buyers to continue up. Looking for a retest into 34150 for a long or for sellers to flush back down through 34150 and a lower high sell. Hang Seng ran out of steam after gaining around 3000 points off the lows in a few sessions. Prices are holding between 20740 and 21315 (which is a wide range) and could easy continue to hold between the levels today. Watching for an early flush higher through 21315 and then a lower high and grind down as we may see some profit taking into the weekend. The Nikkei also had a lacklustre session overnight as price was contained between 26515 and 26770 highs. If price can fend off selling on the open, we may see an extension up and through 26770 to 26880. If not, then I will be watching for a minor lower high and move down.
Cryptos were mixed with Ethereum moving up to test into 2843 while Bitcoin moved sideways failing to push up through 41250. Expecting Bitcoin to move lower into 40270 while watching Ethereum to hold a minor double top and either consolidate sideways again or sell down to 2748.
Spot Gold edged its way higher through 1930 and then stalled around 1950 as sellers pressured price lower into the US close. For higher prices, I want to see price consolidate above the 1930 area before holding a higher low. Shorter term I am expecting a minor lower high and move into 1930.
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Hang Seng Index