Risk off sentiment persists as market looks to Core PCE tonight
US Market Key Charts (S&P, US Dollar, Gold)
$E-mini S&P 500 Futures(SEP4) (ESmain.US)$ (4 Hour Chart) -[BEARISH ↘ **] As expected, S&P dropped lower. We maintain our bearish bias for now, expecting price to pause and hold below 5521.50 resistance before shaping a new push lower towards 5350.00 support. Technical indicators for now are leaning more towards a bearish scenario. Price is holding below 21 period EMA and MACD is showing a strong build up of bearish momentum.
Alternatively: A 4 hour candlestick closing above 5521.50 resistance will open a short term rise towards 5630.75 resistance next.
$USD (USDindex.FX)$ (4 Hour Chart) -[BEARISH ↘ *] DXY tested and reacted below previous resistance. We turn low conviction bearish for now as long as price is holding below 104.420 resistance, expecting a short term drop towards 104.080 support. Technical indicators are mixed for now.
Alternatively: A 4 hour candlestick close above 104.420 resistance will see a short term rise towards next resistance at 104.550.
$Gold Futures(DEC4) (GCmain.US)$ (4 Hour Chart) -[BULLISH↗ *] Price is now holding above short term ascending trendline support. We turn low conviction bullish as long as price is holding above near-term support at 2349.00. A short term bounce reaction towards 2415.70 resistance is expected. Technical indicators are mixed for now.
Alternatively: A 4 hour candlestick closing below 2349.00 support will open a drop towards next support at 2296.00.
NIKKEI 225 / TOPIX Index Futures
NIKKEI225 Futures (4 Hour Chart) -[BEARISH ↘ **] Nikkei225 is in a downtrend. We maintain a bearish directional bias as long as price holds below 38350 resistance level. We expect price to move towards 36850 support level. Technical indicators advocate for a bearish scenario as well.
Alternatively: A 4 hour candlestick closing above 38350 resistance level could open for a push towards 36710 support level.
HSI Index Futures
HSIFutures(4 Hour Chart) -[BULLISH↗ *] HSI is currently bouncing off its descending trendline resistance. We maintain a bullish directional bias as we expect price to move towards 17500 resistance level. Technical indicators have yet to indicate a bullish momentum.
Alternatively: A 4 hour candlestick closing below 17000 support level could open a drop towards 16000 support level.
SG Market - STI
SG Equities (4 Hour Chart) -[BULLISH↗*] We are bullish on STI as long as price holds above 3400 support level. We expect price to take a pause at 3400 support level before pushing for 3500 resistance level. Technical indicators are mixed, with MACD advocating for a bullish scenario.
Alternatively: A 4 hour candlestick closing below 3400 support level could open a drop towards 3340 support level.
Summary - What Is Happening In The Markets
US markets dropped overnight, with $E-mini S&P 500 Futures(SEP4) (ESmain.US)$ and $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US)$ pushing lower by 0.56% and 1.10%. There is still risk-off sentiment among traders due to the continued sell-off in tech stocks and disappointing earnings in other sectors. Traders are moving out of megacap tech stocks and should take note of core PCE price index released tonight.
Asian markets dropped across the board, with the exception of $Nikkei 225 (.N225.JP)$ rallying the highest at 0.48%. There is risk-on sentiment among traders after the release of Japan's core CPI which outperformed. $HSI Futures(SEP4) (HSImain.HK)$ opened mixed. This is due to strength coming mainly from the finance, energy minerals and tech sector along with bullish sentiment among traders as there are increased expectations of more policy easing measures by China. However, the sell off in the major indices are also adding some headwinds. $FTSE Singapore Straits Time Index (.STI.SG)$ moved lower by 0.10%, mainly due to weakness from the 3 biggest banks in Singapore in the finance sector.
Prepared by:
Moomoo Singapore
Isaac Lim CMT, CFTe
Chief Market Strategist
Chief Market Strategist
This report is provided for informational and general circulation purposes only and should not be construed as an offer, solicitation, or recommendation for the purchase or sale of securities, futures, or other investment products. It does not take into consideration any particular needs of any person. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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