Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
US markets were under pressure from the open until algos went to work into the close to lift the prices off the lows. The US generally brushed aside any fears from the Asian market session and continued to focus on inflation as Oil rallied and the Fed reiterated commitments to raise interest rates.
Note : We will have to deal with some wide ranges so risk levels may have to be wider than normal.
The SPI200/ASX200 both brushed aside any negativity from the day session and reversed all the selling to end back around resistance. Expecting that bulls will be getting confused by now but may look to flush up through resistance on the open. The ASX200 will need to hold above 7329 and the SPI200 above 7297 to fend off another selloff. Expect that Banks may perform well today on inflation expectations. The DOW pushed lower off 34780 at the start of US trade although managed to fight back off lows into the close. The trend is still up at this stage so will be looking to see if minor pullbacks are going to be supported for a break up through 34780. If a lower high builds below the level then looking for a sell. Hang Seng had a choppy overnight session and held below 21515. The move up off 21075 leads me to expect more downside today and a push lower on the open. Watching for a lower high and flush through 21075 potentially after clearing out stop orders above 21515. The Nikkei underlying index was closed so expect some chop on the open. Levels to watch are 27375 and 27155.
Cryptos spent the European session grinding higher into their closing prices from Friday before edging lower into the US close. Ethereum has failed again at 2964 to make a minor double top that may drag in more sellers for a push lower. Bitcoin struggled on rallies into 41250 which I expect to hold today. Expecting more shop unless news hits again to create fear…which will probably be brushed aside into the US session again 😧.
Spot Gold held the 1920 area through Asian market trading and then again in the US session but lacked any real conviction to the upside. Expecting price to be capped on any push higher unless there is more negative news to drive markets and traders into the safe haven.
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Hang Seng Index