Wall Street took another hit on Friday night on the back of more inflation drama as the latest consumer spending data in the US not helping, with European shares on the slide as well. The risk complex remains on edge as seen by the selloff in bonds as Treasury yields spike while the USD made further gains against everything, with Euro slammed well below the 1.06 handle as the Australian dollar made a new monthly low at the 67 cent level. The commodity complex saw oil prices bounce back but only marginally with Brent crude getting back above the $82USD per barrel level while gold is still in a depressed funk, slumping down to the $1810USD per ounce level.
Looking at share markets in Asia from Friday’s session where mainland Chinese share markets fell going into the close with the Shanghai Composite down more than 0.6% to 3264 points while the Hang Seng was down more than 1.6%, closing just above the 20000 point barrier. The daily chart is showing this rollover accelerating with price action continuing well below previous ATR support as momentum remains in oversold territory. Watch now for support at the 20000 point level to come under pressure:
Japanese stock markets reopened from their holiday with the Nikkei 225 finishing up 1.3% to 27453 points. After topping out at the 27500 point level, a rollover is still in effect as price action plays catch up to other risk markets. Daily momentum has reverted out of overbought mode and had been suggesting a slide back below the low moving average next with support fading. While futures are indicating a bounceback to start the week this could lack confidence with short term resistance at the 27400 point level needing to be cleared:
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