Trading Plan for the days action for 30/05/22

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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 and higher lows/lower highs once the price action unfolds. All prices refer to the CFD pricing from the charts below.

OVERNIGHT MARKET SNAPSHOT FOR MONDAY 30/05/22

The US markets ended the week with a strong rally on the back of some good economic data. US Bond yields fell after the data showed US consumers were buoyant after spending rose for April and hopes that inflation is slowing as the Feds favoured measure, PCE Price Index, came in slightly less than expected. This is seen as good for economic growth and may show that the worlds largest economy is on track to grow this quarter. The three major Indexes continued on from where they left off the previous session and opened higher and rallied into the close. The Nasdaq led the charge ending up 3.3% which lifted the SP500 while the DOW was up a measly 1.76%. The SPI200 rallied hard and puts the ASX200 in good stead for a strong open as bulls have had all weekend to prepare and get excited for the day. The AUSUSD strengthened as commodities lifted and the USD edged lower. The US is closed for Memorial Day Holiday Monday so may be part of the reason for the strong rally.

The ASX200 is expected to open UP 85/90 points as the SPI200 was all one way action higher in the European and US sessions.

SPI200 (Jun) overnight futures up 83 pts to 7272
SP500 up 100.40 pts to 4158.24
NASDAQ Composite up 390.48 pts to 12131.13
Dow Jones up 575.77 pts to 33212.96
FTSE100 up 20.54 pts to 7585.46
DAX30 up 230.90 pts to 14462.19
GOLD futures US session (Aug) up $3.40 to $1857.30 an ounce
COPPER futures US session (Comex Jul) up $0.0635 to $4.3225 a pound
OIL futures US Session (Nymex Jul) up 0.98 to $115.07 a barrel
CRB Index up 1.86 pts to 320.52
AUDUSD trading at 0.7162
EURUSD trading at 1.0735
GBPUSD trading at 1.2631
USDJPY trading at 127.1100
USD Index US Session (ICE Jun) down 0.205 to 101.653

CLICK HERE FOR ECONOMIC DATA OUT TODAY (AEST) 30/05/22

The SPI200/ASX200 were both one way action from the start of the European session into the close of the US. Price fell away from key resistance during the day session only to break back above the level and never look back in the thinly trading overnight session as bulls pressured price higher. To get long, I would need to see an initial squeeze lower to clear out some buyers. If there is no flush lower, expecting to see a grind higher from the open. The DOW extended up through 32720 on the open and continued higher to close on the session highs. Expect that a lot of the ramp is due to a thinly traded market into the long weekend although many will be watching closely for a pullback to get long. Would like to see a flush lower to clear out some buyers although I expect that not much will happen until the US opens for trade Tuesday night. The US Tech 100 led the SP500 higher with a strong rally from the open. Price held above 12540 into the US close and looks set to pressure up into 12960 in coming sessions. Hang Seng reluctantly headed higher in European and US trade to hold above the 20780 level. Expecting to see bulls charge higher on the open and test into 21235 so watching for higher lows to hold on the lower timeframes. The Nikkei ended up into the 27105 resistance level after holding a higher low at 26730. Expecting to see bullishness on the open and then potentially for a lower high and squeeze on buyers. If price starts to hold above 27105, then a higher could see a move up to 27445. The DAX Index had another solid session as bulls continued the march higher targeting the 14595 level. The minor anchor to the move up is at 14455. Price is extended so we may see some buyers squeezed out on the open before the trend can resume up into resistance. UK 100 Index was more of a grind than the DAX as price edged up into previous major resistance. The 7606 level may again hold and it seems that bulls are tentative to add more risk up at confirmed resistance. Watching for a relatively range bound session with price potentially testing above 7606 before heading lower.

Cryptos edged higher over the weekend to lift of recent lows. Prices remain in a confirmed downtrend and lacking the buying enthusiasm many crypto bulls are accustomed too. Watching Bitcoin to see bulls can continue up off the 28680 level today and test into recent lower highs. Ethereum still looks weak and is being held down at 1820 which bulls will need to break to have a chance at seeing another leg higher…before a potentially major selloff.

Spot Gold initially moved higher before sellers came into the action at the start of US trade to send price back down to test into 1852. Expecting to see more sellers enter the market and pressure prices lower today, potentially into 1842. Crude Oil flushed into 112.70 as expected before ramping higher again to close on session highs. Expecting that price is extended and running out of steam so may trigger some profit taking today so watching for a minor lower high sell entry setup. USD Index chopped around the support area at 101.680 with the potentially showing for another move down. With the economic numbers remaining robust and inflation data slowing, there may still be some room to squeeze out buyers for continuation down.

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SPI200 Index