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 TUESDAY 23/08/22
US Indexes took a big hit overnight as recession fears reared its ugly head again. Bears followed on from where they left off last week as recent buyers locked away some gains ahead of Jackson Hole Symposium where Powell is set to give a speech Friday. The USD continued higher on inflation and interest rate rise concerns while also getting a boost from some safe haven buying. US Bond yields also moved higher and bond prices lower as traders re-adjust for higher interest rates than potentially previously expected. Gold continued to chug lower with most of the selling done in the Asian and European sessions. Oil fended off a big flush into support below the $87 area and bounced straight back up again into the US close…this is not a bad sign for longer term bulls as fears of a pending selloff would have hit oil also. JPY Flash Manufacturing and Services PMI at 10:30am AEST, French Flash Manufacturing and Services PMI at 5:15pm AEST, German Flash Manufacturing and Services PMI at 5:30pm AEST, UK Flash Manufacturing and Services PMI at 6:30pm, USD Flash Manufacturing and Services PMI at 11:45pm and US New Home Sales at 12am AEST.
Market Price Action will find some pressure on the open and be choppy. For intraday trades…do not force anything, let the trade show itself before entries.
The ASX200 is expected to open DOWN 50 points as major Indexes go into sell mode.
SPI200 (Sep) overnight futures down 43 pts to 6910
SP500 down 90.49 pts to 4137.99
NASDAQ Composite down 323.64 pts to 12381.57
Dow Jones down 643.13 pts to 33063.61
FTSE100 down 16.58 pts to 7533.79
DAX30 down 313.95 pts to 13230.57
GOLD futures US session (Spot) down $11.62 to $1735.88 an ounce
COPPER futures US session (Comex Sep) down $0.0098 to $3.6547 a pound
OIL futures US Session (Nymex Sep) down $0.54 to $90.23 a barrel
CRB Index up 0.81 pts to 292.83
AUDUSD trading at 0.6878
EURUSD trading at 0.9944
GBPUSD trading at 1.1764
USDJPY trading at 137.5000
USD Index US Session (ICE Sep) up 0.822 to 108.920
The SPI200/ASX200 added to the day sessions woes and pushed down into 6897 before a minor bounce into the US close. Price is being anchored down at 6920 so bulls will need to break this level prior to any squeeze higher. If they can not, then the bias remains down and I expect a drift lower potentially into 6870. (Refer to the Trade The Structure members area for weekly updated ASX200 charts) The DOW opened weak and continued down during the US session. Price did react up off support around 32975 but I expect a good flush of teh level before any respectable rally can get underway. The anchor to the move down is at 33270. The US Tech 100 also continued down during the US session and moved into 12820 major support. Like the DOW, I want to see a good flush of 12820 and then minor higher lows before I can expect a squeeze on shorts. Price is extended into the level so expecting to see shorts get trapped. The Hang Seng held up okay in the European and US sessions considering other major markets were on the ropes and getting sold off. Two key levels for the open are 19670 and 19565. After yesterdays rally off key support, I expect an early flush lower and then potentially another squeeze higher. The Nikkei was biased down all night holding lower highs all the way down. Price is in no mans land for me but I see that if a lower high holds on the open, then we could see a push down into 28205.
Cryptos held up okay considering the unwind into major share markets. It seems that bears did the damage on Friday and over the weekend but buyers are not willing to ramp price higher yet. Expecting to see Bitcoin flush into 20885 and then continue lower while Ethereum may need a flush higher to clear out some sellers prior to another leg down.
Spot Gold continues to disappoint gold bugs and moves lower. Price is being anchored down at 1757 and managed to fend off more selling in the US session. If price holds below 1757 then I expect to see a continued push lower into 1715. Crude Oil had a choppy session with price flushing lower to clear out some buyers before bouncing straight back up again. Price is holding 91.05 for now but I feel that it is only a matter of time before the break higher as the daily chart is quite bullish to me. USD Index continues to make its way higher as price also finds a safe haven bid as share markets fall over. Price is within striking distance of making new daily highs so I expect to see the momentum up be enough to see price trade up through 109.260.
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US Tech 100 Index
Hang Seng Index
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