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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 share markets ended lower as US Fed Chair Powell hinted at a much more aggressive central bank in fighting inflation. The USD rallied while bond yields more higher trying to factor in potentially more rate rises. Major Indexes were hit right from the open and are showing weakness. We have to continue to watch the bigger picture on the larger timeframes for the major bias.
The SPI200/ASX200 both moved higher along with European markets before being sent straight back down once the US session got underway. Prices tested into highs then moved straight down through the anchor to the uptrend and into support around 7499 on the SPI200 and 7531 on the ASX200. Prices are extended so we may see an attempted squeeze on shorts from the open but I feel we may be looking at a negative end to the week. The DOW popped up through resistance before being beaten down on the back of expectations for faster rate rises. Price moves from 35341 resistance and through 34885 to end into 34715 potential support. Prices are well extended but bias is clearly down so any longs will need to be off clear price action and a higher low potentially after a flush through 34715. Shorts may be difficult if we do not see at least a squeeze on sellers first. Hang Seng also took a big hit falling 460 points from resistance at 20695. Price will be searching for support at open if the bulls want to engineer a move up…potentially off 20114. If not, then I expect to see an opening flush higher then lower high to work shorts. The Nikkei moved down off highs in basically a straight line move. Price ended the US session into support at 27105 which will be the key level for the open and level to watch to see whether bulls want the market back up or whether sellers will continue the move down. Again, I will be looking for a squeeze on sellers before a short setup.
Cryptos initially spiked higher before being dumped along with the US market and major stock Indexes. Bitcoin is showing some erratic price action so I would like to see something clear prior to getting involved. Expecting a test into 41450 and lower high. Ethereum was much the same…spike up then fail. Price went straight down through 6051 which will be my level to look for shorts.
Spot Gold found some support off 1939 before heading high but is holding before a confirmed lower high at 1958. For a long I would like to see a flush lower and then higher low hold. For shorts, I would expect to see a lower high hold below 1958 and then a break down below 1939.
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Hang Seng Index