Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.
US indexes opened the session with a rally but could not hold onto the gains as the negative sentiment weighed. Meta reporting beat the markets expectations (released after hours) as the share price rose around 20% in after hours trade. This may set up for a better open tonight in the US.
The SPI200/ASX200 held up well considering the Country is staring down the barrel at a faster rate rising environment than expected. Inflation numbers out yesterday smashed expectations and has now concerned the RBA to ‘actually do something’ to stem inflation. Prices ending around resistance (7289 on ASX200 and 7288 on SPI200) which I expect will be targeted on the open of the ASX…from there, it is whether bulls go bargain hunting or sellers jump back in to pressure lower. The DOW chopped around 33350 being capped at 33684 and selling soaked up below resistance around 33180. Bulls remain tentative and the close overnight may see many hold back on the open for the coming session. Will be watching for either a break up through 33684 or below 33180. Hang Seng continues to be pressured on the underlying Index so watching to see if we get an opening flush higher to trap some buyers before price rolls over again. The anchor to the move up is around 19855 so if the level can hold, we may see more bullish action but if it breaks, expecting a move towards 19715 and lower. The Nikkei was also contained as the longer term trend is down on the underlying Index. Price swung above and below 26430 being capped at 26590. Will be watching to see if bears can hold a lower high and pressure price towards 25705.
Cryptos found some minor support as US share markets traded in positive territory. Bitcoin is holding above 38550 for now so will watch for a grind higher if Asian markets are positive. If not, then watching for a push into/below 38550. Ethereum looks a little more positive than Bitcoin so watching for a ramp up and through 2910 and then a rally to stall ahead of the US open.
Spot Gold is still not playing ball for bulls as price pressures below 1893. Watching for an extension lower…at least until the USD finds some selling pressure off resistance.
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Hang Seng Index