Stocks remain in sell mode despite or maybe because of more solid US domestic economic data with the latest US consumer confidence print surprising to the upside, with the double whammy of more evidence of a stronger jobs markets. Fed Chairman Powell comments on fighting inflation are still lingering throughout the risk complex with the USD unchanged but still keeping most of the major currency pairs in their place as Euro again dices with parity as the Australian dollar remains below the 69 cent level. Bond markets saw more increases in yields with 10 year Treasuries pushing higher above the 3.1% level while interest rate futures remain solidly predicting a 65bps rise at the next Fed meeting. Crude oil took back all of their recent gains with Brent crude smacked back down to the $100USD per barrel level while gold also fell back to the $1720USD per ounce level.
Looking at share markets in Asia from yesterday’s session, where Chinese share markets had mild selloffs with the Shanghai Composite down 0.4% to 3227 points while the Hang Seng Index was off by nearly 0.5%, closing at 19949 points as it struggles to get back above the 20,000 point level again. The daily chart is getting quite volatile with overhead resistance and daily momentum readings not painting a very clear picture at all. The moving average channel is not providing any directional ability here as price action bounces off the May lows but can this be sustained again given the volatility on Wall Street. Look for a clear breakout above the 20000 point level as a point of action, but futures are indicating yet another reversal:
Japanese stock markets have bounced back with the Nikkei 225 closing just over 1% higher at 28195 points. The daily chart is showing a considerable dip below the trailing ATR support level at the 28000 point area which had been firm since the breakout in early August. Daily momentum has dived into negative territory so it remains to be seen if this level can be defended in the sessions ahead with futures in line with the falls on Wall Street overnight:
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