OS markets all dropping last night as looks like earnings were priced into market and investors are happy to lock in profits around earnings peak.
NASDAQ has broken through support and confirmed break last night with next major support over 4.5% lower (around 14000).
SPX should follow but is coming into significant support levels now (currently still respecting but that may be short lived if Big Tech comes under pressure)
This week the BOE gave the first hint that monetary policy is about to get tighter (as soon as next month) and I'd imagine other policy makers around the world will be forced to follow suit sooner than anticipated with inflationary concerns stepping up and housing affordability becoming just a memory in many locations.
Back home, as if the negative lead from OS markets wasn't enough, the escalating Covid situation in major financial hubs is sure to start weighing on the local bourse.
Sydney has just tightened restrictions, leaving even more people unable to work and Melbourne's worries seem to be only just beginning...
This coming at a time when supply chain issues are already starting to weigh on many industries also.
The XJO has been range trading for the last month between around 7200-7400.
I'd expect a test on the lower end of the range near term with potential to test longer term support around 4170.
On the TA side, the XJO does have some conflicting positive signs but my money is with the bears atm as the upside potential is minor in comparison to downside risk atm...
(20min delay)