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. Opening times (AEST) are 10am SPI/N225, 11:15/30am HSI, 4/5pm DAX and UK100 and 10:30/11:30pm DOW and USTech100.
OVERNIGHT MARKET SNAPSHOT FOR MONDAY 6/06/22
US markets were heavy from the open after the US employment data came in slightly that expected although the unemployment rate held steady at 3.6%. The USD rallied as some shorts were caught off guard and buyers stepped back into the currency after the recent selloff. US Bond yields edged higher as Bonds hover around recent lows remaining under pressure on higher inflation expectations. Many will now be focused on coming economic data and hope that it will show some softness in inflation although Fridays employment data could have squashed the hopes for now. Many will expect that Fed will be forced to raise interest rates harder and faster than they would like which could put more downward pressure on share markets. German and French Bank holiday today so European session may be quiet. The FTSE100 is open up after 2 days being closed.
The ASX200 is expected to open DOWN 25 points as the SPI200 drifted lower into the weekend in the overnight session.
SPI200 (Jun) overnight futures down 32 pts to 7210
SP500 down 68.28 pts to 4108.54
NASDAQ Composite down 304.17 pts to 12012.73
Dow Jones down 348.58 pts to 32899.70
DAX30 down 25.08 pts to 14460.09
GOLD futures US session (Aug) down $21.20 to $1850.20 an ounce
COPPER futures US session (Comex Jul) down $0.0753 to $4.4772 a pound
OIL futures US Session (Nymex Jul) up $2.00 to $118.87 a barrel
CRB Index up 0.17 pts to 323.27
AUDUSD trading at 0.7207
EURUSD trading at 1.0719
GBPUSD trading at 1.2488
USDJPY trading at 130.8800
USD Index US Session (ICE Jun) up 0.353 to 102.185
The SPI200/ASX200 opened the overnight session and headed lower to clear out longs from the days trading. The SPI200 held a lower high at 7213 which I expect to see flushed on the open. The question is whether the RTF at 7189 support will be the support for the day or whether we see a selloff from 7213…I am expecting a weak market today. The DOW held a minor double bottom at 32855 after falling from 33250 during the European session…seems that many guessed on a stronger payroll number and shorted early. Expecting to see lower highs continue to hold and price to grind down into 32570. The US Tech 100 also fell over early and sold down into 12540 from 12960. Expecting to see some bargain hunting off the support level although do then expect to see a lower high again hold and pressure to continue lower potentially in the US session. Hang Seng was close Friday so I expect to see an open below 21400 and run lower into the 21000 zone. Price is extended on the upside into resistance so I see buyers happy to lock in some short term gains considering the end to the week in the US. The Nikkei gave back all the gains from the day session plus extra as price fell from resistance at 27770 and through 27650. I expect to see a test into 27650 and then sellers to continue the pressure lower. The Underlying Index will gap down on the open around 200 points. The DAX Index fell away from 14604 highs on the open of Europe and held on to the losses into the US close. Sellers did not seem to be as aggressive as I would have expected so we may see a drift sideways prior to the further selling and potential lower highs into 14330. Price action has confirmed the short term double top at 14604. UK 100 Index will be playing catchup but considering the market was up Thursday and then down Friday…there not much to catchup on. The key level will be 7535 and then down to 7500.
Cryptos took a hit at the start of the European session and held the losses into the US close as share markets were under pressure. Both BTC and ETH made back some of the lost ground over the weekend so will open slightly stronger. Expecting to see recent lower highs hold on both and price push into lows.
Spot Gold continued to fail and show no love for either the safe haven or inflation hedge narrative. Price pushed into a minor level around 1840 where buyers provided some support but I do not expect the level to hold the USD continues to push higher this week. Crude Oil generally went against the flow of the USD as price ended at highs above the $120 level. Price rallied on expectations that OPEC decision to increase production will not be enough to offset rising demand. Expect that the trend up will continue as the fundamentals remain bullish….looking for pullbacks and highs lows. USD Index moved up after the US employment release as many traders will again move over to the bullish rate inflation/rate rise/Powell camp and have to re-establish longs. Expecting to see a minor pullback and for the dollar to be supported at a higher level to continue up.
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US Tech 100 Index
Hang Seng Index