Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.
US indexes took a beating to end the week and month on a sour note. It was a risk off market right from the open as Amazon fell after a very gloomy report on the back of higher costs while Apple also fell on a disappointing outlook. Inflation continues to persist with the Fed expected to signal a more aggressive stance (and its first rate rise) this week leaving many traders happy to take some risk off the table.
The SPI200/ASX200 both were range bound into the US open and then proceeded to head lower through day sessions lows. Prices moved down into previous sessions support levels where buyers hope to find some support. Expecting a muted session as the RBA is expected to raise rates tomorrow so I would expect new bulls to remain on the sidelines for now. Watching 7313 on the SPI200 and 7336 on the ASX200 to see if buyers can defend the level on the open. The DOW was hit hard off 33700 down through 33268 into the close. Price again extended through previous lows and is stretched into potential support so may tempt in some buyers today ahead of the US open. Will be watching for a higher low and retracement back above 33268 before another potential leg lower. Hang Seng had a big session Friday as major resistance levels were broken on the underlying Index to drag in buyers. Price I expect has gotten ahead of itself and may look to retest into some lows prior to any move higher again. Will be looking for a flush lower on the open and then a potential higher low to hold. If price flushes higher on the open, we may expect another push lower as other major Indexes will be struggling. The Nikkei moved down strongly in US trade after a well contained day session. Price is in now mans and for me between 26590 and 26910 so I will be looking for either an early flush higher and lower high or an opening drive lower into support for a potential short squeeze off a higher low.
Cryptos came under pressure as the US markets sank. Prices continued to come under pressure in weekend trade so expecting to see the negative sentiment continue today. Bitcoin edged below 38550 and I expect to see a drive down into 37644 after the open. Ethereum ended above 2773 and I expect the level to be tested on the open and the downtrend to hold into the US open.
Spot Gold pushed lower into 1893 towards the end of the US session as the USD found some buyers. Price is under pressure so buyers will need to see a higher low off 1893 prior to establishing any longs. If the selling continues, then looking down to 1875.
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Hang Seng Index