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 6/09/22
US Indexes were shut for the long weekend and futures markets closed early. European indexes opened weaker to play catchup with the US from Friday. The DAX reacted up off opening lows while the FTSE (UK100) managed to make back all the opening losses and rally 1.38% off the lows. The DAX was kept lower after Russia said its main gas supply pipeline to Europe would stay shut. They will continue to face energy issues and expect to be pressured by increasing inflation concerns. The UK100 got a boost from commodity stocks and had some good news against a deteriorating economic backdrop…a new Prime Minister Liz Truss was appointed. The ASX may be quiet ahead of the RBA rate statement and interest rate release where the RBA are expected to raise by 0.5%…any more and we will see a spike in volatility. AUS Current Account at 11:30am AEST, AUS Cash Rate and Rate Statement at 2:30pm, German Factory Orders at 4pm AEST and US ISM Services PMI at 12am AEST.
Asian markets may get off to a quiet start with no lead from the US. AUS interest rates out in the afternoon may see the ASX grind until then although expectations are already baked in to price.
The ASX200 is expected to open UP 14 points after the SPI200 pushed up into resistance around 6848 in a thinly traded and quiet session.
SPI200 (Sep) overnight futures up 8 pts to 6839
NASDAQ Composite closed
Dow Jones closed
FTSE100 up 6.24 pts to 7287.43
DAX30 down 289.49 pts to 12760.78
GOLD (Spot) down $2.20 to $1710.14 an ounce
COPPER futures US session (Comex Dec) up $0.0450 to $3.4585 a pound
OIL futures US Session (Nymex Oct) Closed
CRB Index Closed
AUDUSD trading at 0.6796
EURUSD trading at 0.9931
GBPUSD trading at 1.1521
USDJPY trading at 140.5800
USD Index US Session (ICE Sep) up 0.295 to 109.805
The SPI200/ASX200 managed to rally during the European session before going quiet with no lead from the US. Price pushed up into resistance at 6848 before fading into the close. With the RBA release out in the afternoon, I expect that we may see some chop but will be watching for 6848 to hold…potentially flushed early. (Refer to the Trade The Structure members area for weekly updated ASX200 charts) The DOW floundered between 31483 and 31265 in a shortened session. I expect to see a squeeze higher into the US session to clear out some sellers and then will watch for more selling pressure to come in once the US opens for trade. The US Tech 100 held up off 12062 support and edged higher in a lacklustre session. Like the DOW, I am expecting a squeeze higher to clear out some sellers ahead of the US open. The Hang Seng flushed into support around 19200 yesterday, before regaining the lost ground. The longer term bias remains down as sellers pressure price lower. Watching for either a flush lower into 19200 on the open, and then a rally up through 19348 or the reverse…flush higher and then fail. The underlying index has extended into a support area which may entice some buyers into the action. The Nikkei edged its way higher off support around 27520 but the action was choppy with the US closed. For longs, I would like to see a flush lower and then a higher low hold. For shorts, I am watching for a push back below 27712 and then a lower high.
Cryptos were held up off support with the lack of direction from the US share market. The USD held above resistance which pressured Bitcoin and Ethereum lower. BTC is holding below a minor level at 20030 and has support around 19570. Watching Bitcoin to test into support to clear some stops out. Ethereum looks set to break out of contraction so watching for a higher low off 1607 or lower high below 1587.
Spot Gold had a quiet day with price holding between 1715 and 1709. Again, the next move for gold hinges on the USD which continues to look strong. I expect that Gold may need to flush lower prior to any leg up so looking for spikes to get sold. Crude Oil was supported as OPEC agreed to a small production cut to help out the bulls. Price moved up off 86.40 support and into 89.56 resistance. Oil did move back below resistance so this level is key for me today. Watching for a reaction from sellers below 89.56 to test back into lows. USD Index initially pushed into new highs from the open and then faded back down later in the European session. Price continues to hold above 109.300 and may look to consolidate highs. I expect to see price continue to chop around highs ahead of Powells speech later in the week.
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US Tech 100 Index
Hang Seng Index
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