Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN. There will be many possible scenarios shown so it is key to work off major levels once the price action unfolds.
OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 6/05/22 (as at 7:30am AEST)
US indexes were beaten down in what was a delayed reaction to the Feds rate rise. It seems that many are concerned that the Fed will be behind the curve and not raise fast enough to control the currently high inflation. The markets were hit right from the open and bears were in control all session. US key employment data is out tonight which could provide support…if the number comes in weaker than expected. For now, I feel that the markets is turning very bearish and the down days are getting bigger which means that buyers are remain on the sidelines.
SPI200 (Jun) overnight futures down 113 pts to 7213
SP500 down 153.30 pts to 4146.87
NASDAQ Composite down 647.17 pts to 12317.69
Dow Jones down 1063.09 pts to 32997.97
FTSE100 up 9.82 pts to 7503.27
DAX30 down 68.30 pts to 13902.52
GOLD futures US session (Jun) up $6.90 to $1875.70 an ounce
COPPER futures US session (Comex Jul) down $0.0477 to $4.2903 a pound
OIL futures US Session (Nymex Jun) up $0.45 to $108.26 a barrel
CRB Index down 0.40 pts to 313.87
AUDUSD trading at 0.7111
EURUSD trading at 1.0542
GBPUSD trading at 1.2358
USDJPY trading at 130.2100
USD Index US Session (ICE Jun) up 0.996 to 103.590
The SPI200/ASX200 were hit down to major support but did find some love into the close. I feel that it will only be some bargain hunters that can save the market today ahead of US employment data and the weekend. Expecting a flush higher and then more selling into the close. The DOW fell over through 33165 and found some buyers into the close off 32680. Maybe the small bounce was due to short covering into the close. If so I would expect continuation lower tonight…all depends on employment data results. The US Tech 100 was also hot hard from open. The key level will be 12720 and the 12950 zone. Prices are very extended so we may see some back and fill higher to squeeze out some sellers before a potential move back down. Hang Seng could be in for a rough session if buyers do not come out hard from the open. Price edged up off 20280 after breaking the level to target stops. The way price grinded higher is not convincing so looking for a flush higher and then a lower highs for short setups. The Nikkei will open back up after a few days closed and I would expect some fear on the open. Watching to see how buyers react around 26818 or into 26590. The DAX Index took a hit into 13853 and found buyers around the level into the US close. Price is extended into support so watching for a grind higher to flush out some sellers prior to another leg down. The UK 100 Index also took a hit and extended into support. Like the DAX, watching to see if buyers can squeeze out some sellers before another potential leg lower.
Cryptos fell over with the US Indexes. Both Bitcoin and Ethereum have support a long way down which could be tested today if buyers stay out of the action. Both are in no mans land for me so watching for either a lower high and continuation down or a major flush higher.
Spot Gold took a hit as the USD rallied. Price is down on 1875 support and looking like it may want to go lower. Want to see a flush higher and then a lower high for a sell.
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US Tech 100 Index
Hang Seng Index