Short term bounce after Monday's panic

$E-mini S&P 500 Futures(SEP4) (ESmain.US.US)$ (4 Hour Chart) -[BULLISH↗ *] Market continues to hold above 5205.50 support. We stay bullish above this support level, expecting price to do a short term bounce towards 5472.50 resistance. Technical indicators are mixed for now but stochastics is testing support where price bounced in the past.

$USD (USDindex.FX)$ (4 Hour Chart) -[NEUTRAL] We turn neutral on DXY as price is currently taking a pause and looks likely to consolidate in a tight range between 103.360 resistance and 102.640 support. A candlestick close above 103.356 will open further rise to next resistance at 104.000. Price is holding above 21 period MA and MACD while within bearish territory is showing a build up in bullish momentum.

$Gold Futures(DEC4) (GCmain.US.US)$ (4 Hour Chart) -[BULLISH↗ *] Gold price is holding above 2415.70 support, above which we stay bullish with low conviction as long as price continues to hold. A short term bounce towards near-term resistance at 2455 is expected. Technical indicators are mixed for now and stochastics is approaching support where price rallied in the past.

$Nikkei 225 (.N225.JP)$ (4 Hour Chart) -[BULLISH↗ *]We maintain a bullish directional bias on Nikkei225 as long as price holds above 32800 support level. We expect price to push towards 37000 resistance level. Technical indicators have yet to advocate for a bullish scenario, with MACD displaying bullish momentum.

$HSI Futures(SEP4) (HSImain.HK.HK)$ (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) -[BEARISH ↘ *] STI broke down past its ascending trendline support. We maintain a bearish directional bias as we expect price to move towards 3140 support level. Technical indicators advocate for a bearish scenario as well.

Markets took a pause last night after the biggest meltdown in recent times. $E-mini S&P 500 Futures(SEP4) (ESmain.US.US)$ and $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US.US)$ added +0.93% and +0.92% respectively last night as reports that hedge funds and traders are now starting to look for 'buy-the-dip' opportunities. At the same time, the $CBOE Volatility S&P 500 Index (.VIX.US)$ also pulled back much lower showing that the risk-off sentiment is taking a back seat for now. Experts are, however, saying that this pause would be a good time for investors to start hedging their bets in the event of one more leg of sell-off.

Asian markets continued its bounce across the board this morning. Japan's $Nikkei 225 (.N225.JP)$ bounced the most adding another +4.40% at the open after having dropped by more than 20% a week ago. The JPY is also consolidating sideways for now against the USD as traders and investors lick their wounds, assessing their next steps. $HSI Futures(SEP4) (HSImain.HK.HK)$ added +1.49% this morning as the finance and tech sector saw an intraday bounce this morning. $FTSE Singapore Straits Time Index (.STI.SG)$ similarly added +1.38% this morning with the finance sector contributing to the recovery. $SGX (S68.SG)$ climbed by more than 3% ahead of earnings and upon announcement that greater cross border collaboration with Vietnam's stock exchange could very well be the boost that the local equity markets need.

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