Trading Plan for the days action 7/04/22

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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 held on to the losses after a rough Asian session flowed over into European trade. The USD continued higher after the release on the FOMC minutes from the last meeting. Bond yields also eased lower as traders focus on the Central Banks balance sheet ahead of Treasury Secretary Yellens speech tonight. To me, markets are set to rollover and test into major lows as key levels of support have been broken across the board.

The SPI200/ASX200 both had a very choppy session as harsh spikes into support were defended just as intensely. Both found some resistance…ASX200 at 7495 and SPI200 at 7462 which may be tested today. Price action is showing some positive signs and bulls may try to defend lows today after spikes through support failed to continue…or is it desperation to hold prices higher into the ASX open to get a better ‘selling price’. The DOW was under pressure right from the open after a selloff in the European session saw price pushed into support. Price was defended at support off the open so a choppy session followed. Expecting to see 34565 tested and the question will be whether it can hold for a lower high or whether it is broken for a short squeeze higher. Hang Seng moved lower as discussed in the ‘Trading Day Morning Jumpstart’ report video. Price was one way action after some buyers were dragged in off 22135 and trapped for the following move lower. The 21764 level is key for me and I expect bulls will try to hold the action up off the level and defend selling pressure…if it fails, we may see a big move down. The Nikkei has been in a downtrend for a while now and will remain under pressure as long as 27220 holds today. Watching the level for a potential test and failure but expect that sellers will push lower from the open so watching the action around 27030.

Cryptos took a hit from the start of the Asian session yesterday and the continued into the US close. Watching Bitcoin for a spike into 44300 to clear out some buyers before a potential bounce and short squeeze. Ethereum was also under pressure from the open and is pushing into 3188. Watching this for a potential spike into support and bounce for a short squeeze also…but will depend on whether shares markets can find some love today.

Spot Gold saw a choppy session as bulls were pressure by the USD rally although supported by minor safe haven buying. Still the pressure is down for now as long as 1925 holds. Bulls will continue to defend 1917 so the two levels will be watched closely today for a heads up on a coming directional move.

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SPI200 Index