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 WEDNESDAY 8/06/22
US markets rallied from a weak open as buyers start to support prices and consolidate recent gains. Data out late in the session on consumer debt levels, which was higher than expected, showed that the Consumer in the US is still relatively strong and brushing aside inflation for now…but the increased debt levels could be for general living expenses. That said, Target warned of excess inventory that is not getting soaked up by consumers which in turn weighed on retail companies. Tech was the leader as usual as the ‘buy the dip’ mentality continued. Energy shares rose as Oil price stayed stubbornly high and will weigh on sentiment….which will in turn weigh on inflation expectations…all though for now, US Indexes look set to ramp higher. Generally the seesaw markets continue!! No news today in the Asian session watch with Wholesales Inventories and Crude Oil inventories later in the US session.
The ASX200 is expected to open UP 45 points as the SPI200 made back some of the day sessions losses as the US rallied from the open.
SPI200 (Jun) overnight futures up 45 pts to 7146
SP500 up 39.25 pts to 4160.68
NASDAQ Composite up 113.86 pts to 12175.23
Dow Jones up 264.36 pts to 33180.14
FTSE100 down 9.29 pts to 7598.93
DAX30 down 97.19 pts to 14556.62
GOLD futures US session (Aug) up $8.40 to $1852.10 an ounce
COPPER futures US session (Comex Jul) up $0.0143 to $4.4493 a pound
OIL futures US Session (Nymex Jul) up $0.91 to $119.41 a barrel
CRB Index up 0.29 pts to 327.11
AUDUSD trading at 0.7232
EURUSD trading at 1.0707
GBPUSD trading at 1.2588
USDJPY trading at 132.6200
USD Index US Session (ICE Jun) down 0.092 to 102.355
The SPI200/ASX200 managed to make back a lot of the losses from the RBA led selloff yesterday. I still feel that the higher interest rate rise (and therefore the admission from the RBA that inflation is a problem) will weigh on the ASX200. Watching for the SPI200 to flush up into 7164 thanks to a positive US session. From there, I expect to see sellers re-enter the market as more traders take some risk off the table. If price continues higher, expect to see a deeper pullback from the downtrend and then selling pressure to then resume. The DOW saw some choppy action with price flushing into the lows around 32570 before ramping straight back up into 33250. The longer the consolidation between the two levels, the more bulls will get excited and enter the action. The price action does look poised to ramp up through 33250 although could be contained until Fridays CPI figure when we may find out more about the key Consumer. The US Tech 100 flushed into recent lows below 12540 and managed to run straight back up. The action does not look as bullish as the DOW but is clearly being supported below 12540 for now. Would like to see a flush lower and then a higher low to hold for a ramp higher to the resistance zone around 12960. Hang Seng fended off sellers yesterday in Asian trade ahead of a ramp higher in the overnight session. Price is trading just below 21940 which may be the target on the open. If bulls are keen on continuing higher, I would expect to see the usual opening flush lower and then later ramp. The underlying Index is set to gap up above yesterdays day session highs. The Nikkei was up around 160 points from the underlying Index close so may see an early opening flush lower to clear out some buyers and then continuation up with the Index firmly in a bullish trend higher. Would expect to see a move up into test 28372. The DAX Index made back initial losses in the European session and ended slightly higher (on the CFD) into the US close. Price ended near resistance at 14604 which I expect to see tested tonight. I expect that this will be the key level tonight for either bulls to continue higher or bears to start the march lower…ECB Policy Statement out tomorrow so action may be muted tonight. UK 100 Index moved up off a higher low around 7573 to end above the longer term resistance at 7606. Expecting to see a test up into 7645 tonight.
Cryptos ramped straight back up off the Asian market selloff. There is a good fight between bulls and bears…bulls desperately trying to avoid any margin driven selloff while bears capping highs for now. Bitcoin has moved lower off 31550 since the US close which may hold today for another flush into support around 29300. If the level breaks, then expecting to see a move up through to 32300. Ethereum fell away from 1873 in Asian trade and then ramped straight back up to the level into the US close. Price is currently testing into the lows so bears are still in force.
Spot Gold managed to fight back off the previous sessions lows as expected, being helped by the weakness into the USD. The move up was not a very convincing effort from buyers so if the USD holds a higher low, then I expect to see 1856 on gold to hold for a squeeze lower off the zone. Crude Oil saw a choppy session with price flushing through the lows and then highs from the Asian and European sessions. It seems that bulls are intent on continuing the ramp higher through 120.22 so watching for a higher low to hold. Supply issues continue to support buyers. USD Index backed away from resistance at the start of the US session but does look poised to hold another higher low and run back up. This would put pressure on currencies and potentially US share markets. If price holds below 102.770, then we can expect to see a move into recent lows. Do not expect to much prior to US CPI numbers Friday.
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US Tech 100 Index
Hang Seng Index