PROCESS IS KEY….DEFINE LEVELS – MARK EXPECTED PRICE ACTION – TRADE THE SETUPS
OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 8/03/23
Markets took a turn for the worse and were risk off after Powell suggested that the Central Bank could raise rates more aggressively than previously expected. Traders had to re-position for a potentially higher interest rate environment as recent bulls closed long positions. The USD rallied hard and US bond yields spiked and never looked back. Inflation remains a problem which is not going away so we may see further risk off in the coming sessions.
I remain of the view that sticky inflation is the big issue and will weigh on share markets if the Fed, and other major central banks like the RBA, ECB and BOE, can not get it under control.
I expect that we will see a negative Asian session today with selling from the open across the Nikkei, HSI and ASX200 which are all a little extended.
Some KEY ACTIONABLE LEVELS into the Asian market session. Review of the European and US sessions and what that will mean to the price action in the near term along with key levels to watch.
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