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 mixed with the DOW headed higher from the open while the Nasdaq came under fire (dragged lower by Netflix which spooked investors) and weighed on the broader market SP500. The USD eased lower off resistance while bond yields eased (especially longer term bonds).
The SPI200/ASX200 both lifted off the day sessions lows and ended higher in the overnight session. Both ended the US session at resistance levels which I expect to be flushed on the open at the least. If the resistance areas then hold, I will be looking for a move lower into the close and more risk off on the ASX. The DOW managed to consolidate around the 34885 area in the Asian market session and then rallied in European trade. Price closed just below 35341 which may be the target into the US open. I will be looking for a short off the level if it can hold so all eyes on a lower high to hold. Hang Seng continued to find sellers with the longer term daily price action under fire. The 20695 zone will be key to either hold or break. Ideally, I expect a flush higher and then sellers to pressure into and potentially through the level. If we see an early flush into the level and then hold, watching for a short squeeze higher. The Nikkei held two tests into 27112 with bulls remaining stubborn. The Bullish action is not convincing so any further lower highs may see a move down through 27112. The Daily price action looks very tentative and could rollover at anytime.
Cryptos saw an early pop before selling lower from the US open. Bitcoin basically ended the session back around 41450 so I expect that there will be a few breakout buyers feeling a little nervous so I will be looking for a lower high. Ethereum kicked up into resistance before failing as expected. Price is currently hovering around the 3051 zone so any lower high below 3146 could lead to a breakdown.
Spot Gold initially flushed down into 1939 before finding some buyers to lift price up and off the level. Momentum up looks to be easing so watching to see if price fails into 1964 for a lower high and sell opportunity. I do expect that the USD will come under further pressure so this may support gold.
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Hang Seng Index