Wall Street was unsteady as it started its trading week trying to make sense of the post-NFP euphoria with only tech stocks advancing. The USD was able to clawback some lost ground from the Friday reversal with the Australian dollar retracing almost below the 69 handle. Bond markets are seeing more tightening of yields US 10-year Treasury yields falling down to 3.52% while the commodity complex saw oil prices try to consolidate again from their recent losses as Brent crude nearly broke out above the $80USD per barrel level while gold steadied at its new monthly high around the $1880USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets lifted higher going into the close with the Shanghai Composite up more than 0.6% to remain above the 3100 point level, closing at 3176 points while the Hang Seng Index has lifted nearly 2% to extend well above the 21000 point level. The daily chart continues to look quite boisterous here with a series of step ups since the nadir in October last year as daily momentum remains in extreme overbought mode. It looks like weekly support at the 19000 point level is quite firm as traders bet on a post zero-COVID economic liftoff, but the question is this move sustainable:
Japanese stock markets were closed with the Nikkei 225 looking to start around the 26000 points on the reopen today. There is the potential for a swing long trade to develop here after bottoming out at the 25000 point level. Daily momentum was oversold and support has held here with futures a nice bounce but to make it sustainable requires a solid close above the high moving average:
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