Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in yellow.
US markets cracked and headed lower while the USD was dragged lower by a bounce in bonds. Seems that markets were letting off some steam from previous moves as traders locked in some gains as they try to make up their minds on inflation implications.
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 took a hit right from the start of the overnight session. Prices fell away from days highs and pushed into potential support areas at 7293 SPI200 and 7327 on the ASX200. Watching to see if the ASX negative open will be soaked up off support or whether traders expect another negative session in the US. Key will be how the market opens around the support levels. The DOW was also one way action from the start of the European session when traders decided to go risk off. Price fell away from the 34780 area and ended on lows. Will be watching to see if buyers can provide support off 34350 or let price expand further down to 34150. Hang Seng had a whippy night session as price gave up all the gains plus more from the days session and then ramped back up…aaannnddd..then falling into the close. Watching to see if some support comes in at the open and then fails or whether price flushes lower on open and rallies..as with yesterdays price action. The Nikkei was ramped higher yesterday out of the blue…index ending up 3%…and then fell away overnight so the index will gap down around 400 pts. Watching to see if a flush into 27520 can hold and a higher low brings in buyers. If not, then expecting a reversal of yesterdays action.
Cryptos were mixed but held up okay with Bitcoin edging lower off resistance at 43000 but holding minor higher lows into the close. Watching for a lower high to hold and price to push into 41250. Ethereum tried to fight back from weakness in the US session with a spike up off 2964 into 3036 before failing back down again. Key level today is 2964 to see if a lower high brings in sellers for the break lower, or it can hold the level.
Spot Gold rallied as share markets and the USD moved lower. Price ended up at 1950 and is a little extended so may need to clear out some buyers before another leg higher. Watching for a pullback and the a potential higher low.
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Hang Seng Index