Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN on market opens. 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.
PROCESS IS KEY….DEFINE LEVELS – MARK EXPECTED PRICE ACTION – TRADE THE SETUPS
All prices refer to the CFD pricing from the charts below off TD365.com. Opening times (AEST) are SPI/N225 at 10am, HSI at 11:15/30am, DAX and UK100 at 4/5pm and DOW and USTech100 at 10:30/11:30pm .
OVERNIGHT MARKET SNAPSHOT FOR MONDAY 22/08/22
Asian market Indexes were lower for the day and the negative sentiment has flowed over into the European session. The DAX and the FTSE100 were hit hard from the open but the FTSE has managed to make back some of the losses while the DAX remains under pressure. Traders are cautious ahead of the Jackson Hole Symposium where Powell is set to give a speech Friday. I do not expect that he will say anything new and will only re-iterate what he has said previously in an attempt to sooth the doomsdayist’s and bears in the markets. I expect that its only natural that we see a flush lower to clear out some buyers from the recent rally intent on locking in some gains…but I also would not be surprised to see the US fight back from a weak open as bargain hunters and algos attempt to squeeze sellers out of the action in a thinly traded market. Data to watch – USD Flash Manufacturing and Services PMI at 11:45pm and US New Home Sales at 12am AEST.
The US is going to open weak and the initial action will be choppy…..so let it settle prior to looking for an entry. Big players will want to trap shorts first if they want to rally or trap longs before any further dump.
Prices as at 10:00pm AEST
ASX200 Index down 67.6 pts to 7046.88
Nikkei Index down 135.83 pts to 28794.50
Hang Seng Index down 116.05 pts to 19656.98
Dow Jones Futures down 305 pts to 33401
FTSE100 Index up 19.16 pts to 7531.22
DAX40 Index down 265.61 pts to 13278.50
GOLD futures (Spot) down $16.84 to $1730.57 an ounce
OIL futures (Sep) down $0.13 to $90.31 a barrel
AUDUSD trading at 0.6906
EURUSD trading at 1.0000
GBPUSD trading at 1.1807
USDJPY trading at 137.1100
USD Index (Sep) up 0.313 to 108.417
The DOW is under pressure and being held down at 33445. Bulls will need to see this level break and hold a higher low for a long entry and squeeze higher from the open….otherwise its continuation down and an ugly session. The US Tech 100 is much the same as the down and holding support at 13065. Watching this level for some buyers to defend it or for a push lower into 12960 then 12820. The DAX got ugly quick from the European open with a 250 point drop. Price has bounced up off support at 13243 but is yet to make a decision as to which way it wants to go. The anchor down is at 13357 which will need to be broken and a higher low hold for a rally. The UK100 had an RTF (ReTest Fail) at 7542 which is holding the action down at the moment. Price is in no mans land for me so I need to see some higher lows or lower highs hold for an entry (refer to chart).
Cryptos continue lower and remain under pressure. Bitcoin is holding up off 20885 for now with the anchor to the downtrend at 21645. Ethereum has flushed below 1583 but still undecided as to whether it will continue lower off the level or bounce back above…US index open will be important.
Spot Gold continues down and has taken a big hit lately. Price is set to push lower into 1715 but do not be surprised if there is a short squeeze and a spike higher to clear out some sellers. Anchor down at 1757.
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US Tech 100 Index
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