Key Levels and US Market Review for the Asian session open 5/04

Major Indexes moved lower as banking concerns weighed on the US along with fears of an economic slowdown. Employment data out in the US disappointed and pointed to a slowing jobs market which sets up for an interesting Payrolls release Friday. The USD took a hit, which supported Gold, as traders start thinking of a recession. Being the end of quarter, we may see a decent unwind of recent buyers but I expect this will be closer to the employment data release. Either way, I feel that major Indexes are looking heavy and may need a flush lower at the least, prior to any further upside.

The RBA statement was happy to leave interest rates on hold even with inflation around 6.8%. Homeowners (especially recent buyers) were relieved although many still expect further rises to tame the high inflation.

The ASX is expected to open relatively flat around the previous close while the Nikkei is set to open down 164 pts while the Hang Seng is closed for trading.

I remain of the view that sticky inflation is the big issue but it remains a balancing act for the Fed as they potentially come to the end of a rate rise cycle. With the OPEC Production cuts and resultant spike in Oil ( and clear potential for higher levels), bulls will have something to think about regarding inflation.

Some KEY ACTIONABLE LEVELS into the Asian market session. Review of the European and US sessions and what that will mean to the price action in the near term along with key levels to watch. Setups I expect to see play out on the major markets below :-

Markets covered :-
DOW
Nasdaq
DAX
FTSE
ASX200
Hang Seng
USD Index
Gold
Oil
Copper