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 3/10/22 (as at 7:30am AEDT)
US Indexes ended the week on a low note to give up some early gains and finish on session lows. The three major US indexes are pushing below major support levels which may be a heads up for more negative action this week as traders ponder interest rate rises and how high they will go! European Indexes are also being pressured lower as expectations for rate rises increase and inflation remains high. I expect that the DAX and FTSE will play catchup with the US close and open weaker today. The USD has held up off support which continues to pressure the share markets and I expect the Dollar will be the main focus again this week. US Bond yields spiked into the close Friday and may come under more upwards pressure this week as traders position for the key US Employment Data release Friday. JPY Tankan Manufacturing Data 10:50am AEDT, CNY Bank Holiday, EUR German Bank Holiday, German Final Manufacturing PMI at 6:55pm AEDT and USD ISM Manufacturing PMI at 1am AEDT.
Asian markets are expected to open weaker and continued to be pressured lower so will be focusing on lower highs holding off pullbacks. The Hang Seng is closed for the session.
The ASX200 is expected to open UP 5/10 points although expect some pressure from the open as the SPI200 gave back earlier gains into the US close Friday.
SPI200 (Dec) overnight futures up 5 pts to 6471
SP500 down 54.85 pts to 3585.62
NASDAQ Composite down 161.89 pts to 10575.62
Dow Jones down 500.10 pts to 28725.51
FTSE100 up 12.22 pts to 6893.81
DAX30 up 138.81 pts to 12114.36
GOLD (Spot) up $0.31 to $1660.90 an ounce
COPPER futures US session (Comex Dec) down $0.0295 to $3.3885 a pound
OIL futures US Session (Nymex Nov) down $1.74 to $79.49
CRB Index down 2.86 pts to 268.29
AUDUSD trading at 0.6400
EURUSD trading at 0.9802
GBPUSD trading at 1.1170
USDJPY trading at 144.7400
USD Index US Session (ICE Dec) down 0.042 to 112.160
The SPI200/ASX200 flushed higher twice during Fridays session before drifting back down to where it started. This to me is an attempt to buoy price above support which may be setting for a weak open and another selloff through 6461 today once the underlying ASX opens. Longer term, the ASX200 is under pressure after a very weak bounce so I expect buyers to remain on the sidelines and sellers to control the action today. (Refer to the Trade The Structure members area for weekly updated ASX200 charts) The DOW moved below 28890 support into the US close. This is a bearish move at a time when the underlying index is trying to hold major support. I expect a minor retest up into 28890 but for the level to hold as the European session will open weak and play catchup with the US from Fridays late selloff after Europe closed. The US Tech 100 also flushed and ended below a key support level around 11085. The bias is down and in a prime position to expand lower today and this week into the employment data release Friday. Watching for continuation down today. The Hang Seng held up off 17101 but also below the days highs at 17245. Price action is looking a little uncertain as the Underlying index is extended lower and may be running out of steam and due for a corrective move higher. Watching to see an early flush lower and then a minor higher low for a long setup. The index is closed tomorrow so I do expect any major rally to be capped. The Nikkei pushed into resistance before failing lower into the close. Price action is pushing lower so watching for more weakness today on the open. Watching 25990 to hold and see a test into lows ideally 25912 or lower.
Cryptos opened weaker after prices drifted lower in weekend trading. Bitcoin failed off 19940 resistance and may look to extend on the losses today so watching for a lower high off 19470. Ethereum also opened weak today below support at 1314 which I would like to see retested prior to another leg lower.
Spot Gold tested into resistance at 1677 but fell just short holding a minor lower high at 1656 as the US moved higher Friday. Watching for a minor push higher and then a lower high to squeeze out some buyers for a move back below 1656…this will depend on what the USD wants to do today. Crude Oil has opened stronger today in what I expect is a flush of some sellers ahead of a move up today. I expect that the 80 level will hold and we will see a higher low potentially around the 80.93 zone. USD Index held up off 111.768 on Friday which I would expect to hold today. Interest rate rises and inflation is the focus so traders will be awaiting for ISM Manufacturing data out on the US open today.
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US Tech 100 Index
Hang Seng Index
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