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 MONDAY 9/05/22 (as at 7:30am AEST)
US indexes again moved lower as buyers remained on the sidelines and more risk adverse as the bull market continues to fade and unwind. US Employment numbers came out a little stronger than expected with the Unemployment rate holding at 3.6%. Average hourly earnings fell slightly which concerned the market and put the major Indexes under pressure on the open. Long dated bond yields rallied pushing bond prices lower as traders remain sceptical that that the Fed will be able to tame inflation enough with just a few rates rises as they alluded to.
SPI200 (Jun) overnight futures down 51 pts to 7107
SP500 down 23.53 pts to 4123.34
NASDAQ Composite down 173.03 pts to 12144.66
Dow Jones down 98.60 pts to 32899.37
FTSE100 down 115.33 pts to 7387.94
DAX30 down 228.23 pts to 13674.29
GOLD futures US session (Jun) up $7.10 to $1882.80 an ounce
COPPER futures US session (Comex Jul) down $0.0455 to $4.2460 a pound
OIL futures US Session (Nymex Jun) up $1.51 to $109.77 a barrel
CRB Index down 2.54 pts to 311.32
AUDUSD trading at 0.7076
EURUSD trading at 1.0551
GBPUSD trading at 1.2348
USDJPY trading at 130.5600
USD Index US Session (ICE Jun) down 0.122 to 103.680
The SPI200/ASX200 were pressured lower from the start of the European session but did find some support which held into the US close. The SPI200 was capped at 7141 and support held at 7092 although the longer term trend down remains intact. If the ASX200 holds below 7180 then expect to see further downside. The DOW saw a choppy session from the open with price holding between 33025 and up off 32680 support. If buyers can continue to provide support off 32680 or fend off a flush into 32330, then we may see an unwind of some recent sellers and a squeeze higher. If a lower high holds below 32680, then forget about longs for a while as the selloff may become more entrenched. Traders will be looking towards US CPI (Inflation numbers) out Wednesday before the US open. The US Tech 100 was under pressure from the open and ended closer to the sessions lows than highs. Price looks set to continue lower and hold below 12720 as tech remains under pressure. Would ideally like to see a failed attempt to move above 12720 and then a lower high to sell into. Hang Seng continues to hold lower levels with the anchor to the recent move lower at 19945. The underlying index looks adamant in pushing into major lows around 400 points lower which will pressure the CFD prices today. Watching for a flush higher on the open and then sellers to continue the move down into/through 19665. If price flushes lower right from the open, then watching for a bounce trade off a higher low. The Nikkei initially rallied off lows around 26590 but then the buying faded at the start of the European session and price rolled over. The action was very choppy and uncertain and lacked conviction to the downside even though price moved lower. I expect that the loner term pressure down will continue so looking for lower highs to drag in more sellers. The DAX Index moved down off 13853 from the European open and found buyers to soak up the selling into 13575 as the US fended off another selloff. The trend remains down so watching to see if lower highs can continue to hold or whether buyers start to squeeze up off 13575…in which case I would expect to see a flush lower on the open later. The UK 100 Index also held lower highs as rate rises pressure growth prospects. Will be looking for a flush higher on the European open and then trapped buyers to then pressure prices back down and test into 7339.
Cryptos generally hovered around lows with Bitcoin holding around 36120 into the US close while Ethereum held a lower high at 2730. If there is any continued negativity into indexes during the Asian session then expect to see sellers pressure BTC and ETH lower. Both are expected to see the CFD pricing open weaker after weekend trading was lower.
Spot Gold is currently bouncing up off the 1870 zone but is not convincing as minor higher lows hold. If bulls can not get price back up through 1892, then we may see a major lower high hold and gold test back into lows around 1850.
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US Tech 100 Index
Hang Seng Index