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 TUESDAY 7/06/22
US markets gapped up on the open to follow on from a positive Asian and European session but bulls failed to continue the major Indexes higher. Price action generally closed the gap into the US close to give back most of the opening gains. The markets remain relatively uncertain with rate rises and generally unwilling to hold risk for extended periods of time. The USD continued higher while Bonds went lower (Yields higher) to pressure the stock market sentiment leaving intraday traders and algos to bully the market. Seems that Boris Johnson has survived a no confidence vote but the whole ordeal highlights some political uncertainty which could spill over into the local market. Aussie Interest rate news at 2:30pm AEST where RBA expected to lift rates. Yellen speaks tonight in the US.
The ASX200 is expected to open UP 5 points after the gains made in European trade were given back into the US close.
SPI200 (Jun) overnight futures down 5 pts to 7207
SP500 up 12.89 pts to 4121.43
NASDAQ Composite up 48.64 pts to 12061.37
Dow Jones up 16.08 pts to 32915.78
FTSE100 up 75.27 pts to 7608.22
DAX30 up 193.72 pts to 14653.81
GOLD futures US session (Aug) down $6.50 to $1843.70 an ounce
COPPER futures US session (Comex Jul) down $0.0425 to $4.4295 a pound
OIL futures US Session (Nymex Jul) down $0.37 to $118.50 a barrel
CRB Index up 3.54 pts to 326.82
AUDUSD trading at 0.7194
EURUSD trading at 1.0695
GBPUSD trading at 1.2531
USDJPY trading at 131.8900
USD Index US Session (ICE Jun) up 0.250 to 102.410
The SPI200/ASX200 rallied on the open of the overnight session before holding a double top at 7238 (on the SPI200) below major resistance at 7250. Price was quick to fall away from the level but did find support above 7189. Expecting another choppy day ahead of RBA and Rates as neither buyers or sellers commit for a bigger move. Watching for a potential flush higher off the open. The DOW held below 33250 again and ended around previous lows at 32855. Expecting that this level will be key for bulls to defend if they want to see a move above 33250. If they fail to defend then expecting to see a move into/below 32570. The US Tech 100 is caught between 12540 and 12960 with the pressure looking to be to the downside at the moment. If the 12540 level can once again hold, then looking for a move to 12960. If not, then we could see another selloff over the coming sessions. Hang Seng initially flushed lower on the open yesterday before proceeding to rally over 800 pts falling just shy of 21925. The underlying index is bias up but may need to squeeze out some buyers, which we could see today, before another leg higher. The Nikkei was ramped higher from the open yesterday with the underlying index, like the Hang Seng, being bias up. Price found minor inside support at 27893 which could support an extension up into 28372. If sellers hold below 28117, then expecting to see a squeeze lower. The DAX Index initially ramped higher through 14604 being supported by the positive Asian session. Price then failed along with the US to trade back into 14604 into the US close. If buyers can fend off any selling pressure on the European open later, then expecting a move to 14900. UK 100 Index gapped up on the open and pushed straight up into previous highs around 7645 before moving lower. If we see rice hold above 7594 tonight, I expect to see another leg up.
Cryptos managed to put together a rally from the open yesterday. Buyers ramped price higher to squeeze out sellers. This may be good for Bitcoin as price held a potential higher low at 29300 although expecting to see some short term profit taking through 31180. Ethereum rallied into 1909 before failing off the level. The longer term trend down remains in tact which could see a push back below 1850 today.
Spot Gold held a lower high at 1856 early in the European session and then headed lower into the US close. The pressure from a rally into the USD was too much for Gold bulls and we may see an extension to the move down on gold into 1831 support potentially after an initial squeeze higher to clear out some sellers. This will of course depend on what happens to the USD and whether if finds sellers later tonight. Crude Oil squeezed lower as the share market floundered. Price edged its way down to test into 117.80 which looks set to hold as a higher low. If price can hold above the level today, then watching for another push higher. If not then expect a move down through 117.80 in the European and US sessions. USD Index initially pushed lower through Asian trade and then held a higher level to push up and hold around the 102.380 level into the US close. The move up completes two minor legs up off 101.736 so we may see some pressure lower off resistance.
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US Tech 100 Index
Hang Seng Index