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. All prices refer to the CFD pricing from the charts below.
OVERNIGHT MARKET SNAPSHOT FOR MONDAY 23/05/22 (as at 7:30am AEST)
The US saw a solid bounce up off session lows into the close in the final hour of trade. News that markets are now ‘in bear market territory’ will be pumped up by media so I expect to see more sellers keep the pressure on especially if consumer companies fail to meet reporting expectations. It was a good fight back but again I suspect that it was intraday short covering into a thin market being helped by the algo pump….seeing the DOW bounce over 600pts or 2% while the Nasdaq 2.8% off the lows was a little unusual on no news. German Ifo Business climate data out at 6pm and BOE Gov Bailey speaks at 2:15am.
The ASX200 is expected to open DOWN 5/10 points after the SPI200 was a repeat of the previous session with a 65 point rally off the session lows into the US close.
SPI200 (Jun) overnight futures down 15 pts to 7129
SP500 up 0.57 pts to 3901.36
NASDAQ Composite down 33.88 pts to 11354.62
Dow Jones up 8.77 pts to 31261.90
FTSE100 up 87.24 pts to 7389.98
DAX30 up 99.61 pts to 13981.91
GOLD futures US session (Aug) up $0.60 to $1848.40 an ounce
COPPER futures US session (Comex Jul) up $0.0212 to $4.3042 a pound
OIL futures US Session (Nymex Jul) up 0.39 to $110.28 a barrel
CRB Index down 1.02 pts to 312.73
AUDUSD trading at 0.7040
EURUSD trading at 1.0564
GBPUSD trading at 1.2480
USDJPY trading at 127.8800
USD Index US Session (ICE Jun) up 0.264 to 103.015
The SPI200/ASX200 again went lower from the start of the US session before fighting back into the close. Price ended around where it started the overnight session after clearing out any early sellers. I expect to see a pop on the open to trap some buyers but do not expect another strong session considering the US remains under pressure. The DOW was all one way action from the open before the 600 point bounce saved it from a bad end to the week. Price held below 31295 with the anchor to the move down holding at 31560. Would like to see another lower high hold before any short off 31295. The US Tech 100 was also saved from a bad day with the late bounce but it was not as convincing as the DOW. The 11845 level will be key once the action kicks off today. The question will be whether 11710 can hold a retest and then engineer a rally…or whether it breaks for continuation lower. Hang Seng rallied during the day up into 20768 and then fell away in the European and US sessions. Price held a low off 20302 which I expect to hold today. Watching for a flush lower on open and then bulls trade up into 20768 as the Index is expected to open only slightly lower. The Nikkei rallied during the day and tested into 26930 early in European trade, then fell back down into 26355 before the late bounce with the US. Price is in no mans land but I do expect to see a flush up to retest 26930 before sellers step back into the action and hold lower levels. The DAX Index also had a choppy session as bulls were out in European trade to follow on from the positive Asian session but then disappeared once the US opened. If price fails to kick on higher from the open tonight, then expecting to see a test into 13855. UK 100 Index ended at 7400 into the US close after the whipsaw session. Watching to see a pop and higher low off 7400 for a long into 7480…before the US session gets underway. If price can not hold above 7400 on the open, then price could simple fail lower.
Cryptos flushed lower into the US closed but have managed to rally bac over the weekend to setup for a stronger open today. Expecting to see some bullish action early but for sellers to cap a major run higher before the US opens for trade and we see what is in store from then.
Spot Gold is showing more bullish action as price held up off 1828 and rejected the level. Expecting to see a flush higher into 1853 to at least run some stop losses above the zone. If the USD again fails lower today, expecting to see Gold run higher. Crude Oil chopped around above 109.50 with a clear lack of commitment from both the bulls and bears. If the USD heads lower, I do expect price action to test into 112.70. USD Index moved up off lows for the session but staggered up into 103.232 before failing into the US close. If this level holds today and we see a lower high hold, then expect currency crosses find a bid and stocks markets potentially supported.
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US Tech 100 Index
Hang Seng Index