Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.
US share markets were supported by positive earnings to lift indexes up from the open while the rest of the market…such as bonds, USD and Gold…painted a different picture. It feels like bulls expect earnings to continue to beat expectations and see that IMF’s warnings of a Global economic slowdown is good for interest rates and inflation…ie only a few rate rises and therefore shares remaining the likely place for future yield/gains.
The SPI200/ASX200 both eased from the European open before ramping higher on the US open to blast up towards all time highs. I expect a positive ASX open may see a test into new highs before trapping some buyers and a fade lower. The move up seemed overly strong considering IMF growth forecasts and concerns so may be a trap for bulls on the open. The DOW lifted into resistance at 34885 and is extended into the level. Watching for a long trap prior to a squeeze lower. Expect that bulls will be cautious up at the level prior to the US open and we may see some risk off moves lower. If not, then a grind higher may be on the cards. Hang Seng sold off during the day and held the lows into the US close. Expecting to see price test into lows in the first session before finding some buyers. The index could easily come under major pressure again today so feel that the key level today for the open will be 21038…to either hold or break. The Nikkei survived an early flush lower before ramping higher into 27201. The bias is up but struggling so I expect price to again be heavy on the open potentially after a spike higher to trap some buyers.
Cryptos edged higher into the start of the US session as indexes rallied on positive earnings results. Bitcoin pushed up into 41450 before finding sellers to keep price contained into the US close. I expect that bulls may look to break up and through the level but will be looking for at least a squeeze lower first. Ethereum pushed up through 3051 and looks set to continue the move up into 3146.
Spot Gold came under pressure into the US open as the USD was supported on global growth fears from the IMF. Price held below 1983 and nosedived below 1964 finding buyers into 1944. I expect that price may flush into 1939 to take out some stops and trap some shorts prior to a squeeze higher.
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Hang Seng Index