Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
US markets were ramped higher from the open before being locked in a tight range into the close ahead of Fed speakers tonight. The focus is on inflation but the market is taking rate rise expectations in its stride at the moment.
Note : We will have to deal with some wide ranges in this choppy market so risk levels may have to be wider than normal.
The SPI200/ASX200 both grinded their way higher from the start of the overnight session. Prices are making slightly higher highs so is lacking conviction from buyers. It seems the action is more algos hunting levels and trapping traders on breakouts. The lack of follow through either up or down would suggest that the market is waiting for something. Expecting more chop today and lack of follow through ahead of the Fed speakers tonight. The DOW pushed up into 34780 where price consolidated into the close so looking for a continuation move up to test into 35025. Momentum is up so feel that the action will play out prior to Fed Powell speech. Hang Seng did all the hard work in the second session and then into the US close as price lifted. The index will gap up around 200 points which may see bulls push the Hang Seng into 22310 resistance. Will be watching for a short off this zone or potentially through 22028 if sellers are more aggressive on the open. The Nikkei also did the heavy lifting coming into the European session with a rally of around 380 pts. Price stalled into the US close around 27690 but is hovering above a major level at 27520. The key level will be 27690 to see if price opens and wants to continue higher or whether buyers start to lock in gains off the level and I look for a sell setup.
Cryptos were ramped higher with Bitcoin breaking up through 41250 convincingly and trading straight into 43000 resistance. Price held this level into the close so I expect price may drift lower to squeeze out some buyers prior to the European open. Ethereum also busted up through resistance at 2964 and held above the zone in US trade. Price seems to want to continue higher but has 3036 resistance to contend with first.
Spot Gold remains heavy as inflation and rate rises are being brushed aside by share markets. The USD move lower from the start of the European session did not provide support so watching for a further grind lower and hold below 1930.
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Hang Seng Index