Further weakness expected due to tech sell off

$E-mini S&P 500 Futures(SEP4) (ESmain.US)$ (4 Hour Chart) -[BEARISH ↘ *] As expected, drop in progress. We stay bearish on the S&P, as long as price holds below 5485.75 resistance, we can expect price to continue to drop towards 5366 support. Technical indicators are advocating for a bearish scenario for now.

$USD (USDindex.FX)$ (4 Hour Chart) -[BEARISH ↘ *] DXY is whipsawing within a broad range. We stay bearish with low conviction as long as price is below 104.550 resistance. A short term intraday drop towards 104.090 is expected. Technical indicators are mixed for now.

$Gold Futures(DEC4) (GCmain.US)$ (4 Hour Chart) -[BULLISH↗ *] Price is currently holding above near-term support at 2478.50. We turn bullish with low conviction for now, expecting price to push higher towards 2532.90 resistance. Technical indicators are advocating for a bullish scenario.

$Nikkei 225 (.N225.JP)$ (4 Hour Chart) -[BEARISH ↘ **] Nikkei weakened further. As long as price is holding below near-term resistance at 36820, we turn bearish, expecting a drop towards 35285 support. Technical indicators are advocating for a bearish scenario as well.

$HSI Futures(SEP4) (HSImain.HK)$ (4 Hour Chart) -[NEUTRAL] HSI drifted lower and is now close to key support at 16700 but also capped below key resistance at 17450. We stay neutral for now with no clear directional bias and no good risk/reward plays. A daily candlestick close below 16700 support will open a deeper drop towards 16500 support. Technical indicators are leaning towards a bearish scenario.

$FTSE Singapore Straits Time Index (.STI.SG)$ (4 Hour Chart) -[NEUTRAL] STI dropped lower but is testing and whipsawing around 3375 support level. There are no strong support before this levels and no oppurtunities for good risk to reward plays as well. We prefer to stay neutral for now. A candlestick close below 3375 support will open a deeper drop towards next support at 3350. Technical indicators are mixed for now. Price is holding below 34 period EMA but stochastics indicator is testing support where price bounced in the past.

As expected, the relief rally that traders saw was short-lived as the markets headed for another round of sell-off last night with the $E-mini S&P 500 Futures(SEP4) (ESmain.US)$ and $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US)$ retracing by -1.40% and -2.47%. This comes as the earnings announcements by tech stocks continue to miss the mark. Intel mentioned that her Q3 revenue will disappoint and also recently announced that there can be thousands of jobs cut in order to reduce costs. Amazon's revenue also missed analysts' estimates. These negative news caused both $Intel (INTC.US)$ and $Amazon (AMZN.US)$ to drop by -5.52% and -1.56% respectively, at the same time the tech sector saw further weakness across the board. $Apple (AAPL.US)$ earnings annoucement doing better than expected, did nothing for the risk-off sentiment in the markets. Investors are now turning their attention to tonight's NFP after seeing an increase in umemployment claims last night. Tonight's NFP will be important as it feeds into the decision making process of the US Federal Reserve.

Asian markets mirrored the moves seen in the US markets and saw a drop across the board. Japan's $Nikkei 225 (.N225.JP)$ continued it sell-off and fell by another -3.89% at the open today. The downward pressure comes as JPY continues to strengthen with investors taking a flight to safety. Expectations for further rate hikes by BoJ also continue to climb. $HSI Futures(SEP4) (HSImain.HK)$ dropped by -1.70% as the financial and technology sector continued to add further drag on the index. $FTSE Singapore Straits Time Index (.STI.SG)$ also tumbled by -0.98%, moving in line with the major markets with the manufacturing sector taking a hit with $Seatrium Ltd (5E2.SG)$ dropping the most by -7.14%.

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