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 THURSDAY 1/09/22
Asian market Indexes were lower from the open with the ASX leading the charge down. Traders are happy to be risk off as the Global economy faces recession….again. European markets opened and went lower while the US generally ranged sideways in to the US open. I do not expect any major move tonight ahead of employment data and considering traders have been risk off the previous few sessions. High inflation and the Feds expected aggressive rate rise plan will continue to weigh on bulls. US ISM Manufacturing PMI at 12am.
US markets were in a holding pattern during the European session with the DOW and USTech movement sideways. The DAX and UK100 moved lower which may be a sign of more weakness to come in the US session. Traders will not add long term risk ahead of the US data release tomorrow...expecting mostly intraday traders to be active.
Prices as at 10:30pm AEST
ASX200 Index down 141.2 pts to 6845.6
Nikkei Index down 430.06 pts to 27661.40
Hang Seng Index down 357.08 pts to 19597.31
Dow Jones Futures down 166 pts to 31366
FTSE100 Index down 110.60 pts to 7173.56
DAX40 Index down 143 pts to 12691.96
GOLD futures (Spot) down $10.54 to $170.66 an ounce
OIL futures (Sep) up $1.91 to $87.64 a barrel
AUDUSD trading at 0.6824
EURUSD trading at 0.9988
GBPUSD trading at 1.1564
USDJPY trading at 139.5400
USD Index (Sep) up 0.601 to 109.286
The DOW has generally been going sideways and holding below 31450. Minor support is at 31310 for now but expecting both levels to be flushed on the open. Would expect a minor squeeze higher to clear out some sellers but I do not expect a major risk on move tonight ahead of employment data considering the global inflationary concerns. The US Tech 100 was holding the 12114 support and has recently flushed higher I suspect to trap some buyers into the US open. Watching to see if buyers want to extend up into 12255 on the open before pressing price lower again. The DAX flushed lower on the open of the European session and has since edged its way back up to minimise the losses. Watching to see how sellers react around 12715 as to whether they will be looking to lower levels. Hard to see risk ( ie a big rally ) on for the DAX into the close. The UK100 is moving lower and holding lower levels. Price is extended on the longer term timeframes so may run out of momentum into 7173 lows. For now bias remains down.
Cryptos holding minor lower highs but also holding support. Ethereum is holding support at 1533 and potentially setting to break higher…but this will depend on the share markets also being risk on. Bitcoin is holding 19815 but looks heavier than ETH so wanting to see a clear higher low before looking for a long…otherwise the momentum is down for now.
Spot Gold is still grinding its way lower as sellers continue to hold lower highs. The action is being held down at 1709 and until this level breaks and a higher low can hold, the bias remains down….potentially targeting major lows at 1685.
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US Tech 100 Index
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