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Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.
US markets had a choppy open as the DOW ramped higher and then fell just as hard along with other major Indexes after comments on the potential for aggressive monetary policy to combat inflation. This sent the USD spiking higher which hit commodities and currencies as Bond yields climbed while traders repositioned for faster hikes.
The SPI200/ASX200 added to the days losses and pushed lower into support at 7433. The move down was steady and saw a minor flush and bounce of 7433 into the US close. Will be interesting to see if some bargain hunters provide some support on open or whether prices continue lower. The anchors to the move lower are at 7467 on the SPI200 and 7499 on the ASX so if prices hold below, we may see some more negative action into the close today. The DOW come out of the gate firing and ramped higher before comments sent the markets lower at 12:03am AEST. Concerns continue for inflation and traders took some risk off the table into shares. Price reacted higher off 34565 so watching this level to be retested and hold for a potential squeeze on shorts. Will be interested to see if there is any follow through tonight ahead of reporting kicking off next week. Hang Seng Hang Seng missed the overnight action lower so may have some catching up to do so the open will be important. The index is extended into 22663 so expecting that sellers may take control today. The Nikkei continued the move lower from the days session and pushed down into 27390 before a minor bounce into the close. The bounce may be due to short covering so watching to see how buyers/sellers react at 27390 or 27628.
Cryptos took a hit as share indexes moved lower. Bitcoin flushed up through 46875 and then failed prior to the US open where it then headed lower. Seems the bulls saw the selloff coming and wanted out early. Watching to see if 45400 is tested and can hold today or whether there is further downside to come. Ethereum also flushed higher and t hen failed into support around 3418/3443. Price continues to look heavy so watching 3418 as the action level today.
Spot Gold gave up early gains on a spike into 1950 and settled the session down around 1917. I expect the 1925 level to be key for some action today and into the European session. Watching for a move lower into flush 1917 to clear out some stops at the least so 1925 may hold a lower high. Expect that 1925 will be tested first prior to any flush lower.
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Hang Seng Index