A collapse in the crypto market and an unusually deadlocked US midterm election “result” saw Wall Street tumble overnight, with Bitcoin again falling sharply, down to the $15K level while the USD continued to gain ground against the major currency pairs. Euro fell back to parity after dicing with the 1.01 handle while the Australian dollar also retraced down to the 64 cent level. US bond markets strengthened across the curve with 10 year Treasury yields pulling back to the 4.1% level while commodities were mixed with Brent crude dropping sharply back to the $92USD per barrel level while gold head on to its recent gains above the $1700USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets were pulling back with the recent inflation print underwhelming, as the Shanghai Composite finished down 0.4% to 3048 points while the Hang Seng Index has slumped again, down more than 1.2% to remain but still above the 16000 point level at 16358 points. The daily chart is showing a potential bottoming action here after almost testing the 2008 lows, as the 15000 point level remains the key area to watch for signs of support. The previous session bullish engulfing candle is setting up for a clearance of overhead trailing ATR resistance but its not yet out of trouble:
Japanese stock markets were also hesitant to keep adding on yesterday, with the Nikkei 225 closing nearly 0.6% lower at 27716 points. The daily price chart was showing a breakout brewing as overhead resistance at the 27500 level is cleared but without a better lead from Wall Street confidence is going to disappear. Futures are indicating a poor start to today’s session this morning with momentum likely to retrace from overbought status and the low moving average to come under threat:
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