The continuing Powell's effect on the indices

 well, I am still in the midst of my trip in Kuala Lumpur and so, still no trading because of too much erants.

However, I feel that I need to have an up-date on Dow, Nikkei and Hang Seng to maintain my attachment on the market. I will still limit my review on the 3 main indices I am focusing on.

Fig 1. Dow Jones Weekly Chart

Dow as it seemed did not pause last week after crossing and instead continued its journey downward. Apparently, Powell's speech was kind of difficult to digest.

The momentum is still strong as the bars barely crossing each other and it is now resisted by the 8 and89-week moving averages.

I did a projection measurement base on the latest set up and the next level of supports are 28,544 and 26,982. But one important point to note is the previous low of 29,653, a minor correction might happen at that point.

Fig 2. Nikkei Weekly Chart

The turbulence on Dow Jones has certainnly affected Nikkei, causing it to gap down and 'plunged" only to be supported by both 21 and 55-week moving averages. 

So far, Nikkei is the only index of the 3 who is still floating above the moving averages. and based on figure 2, there are a few possibilities of projection reading, blue line projection leads to resistance of 29,177, which was reached on 14th August 2022. It has since reversed due to Powell.

So the next measurement on the same set up leads to support level of 27,007 to 26,404. Now, based on the present wave structure, is this a viable level?

With the present development, it is possible that Nikkei might drop further. The Zig Zag movement give me the feeling that it is in a B wave so C may be much longer and crosses the bottom of A.

Thus the red line projection reading.

 The support for this set up lies between 25,443 to 23,108.

However, you can call me out for being bias. Of the 3 indices, this is still the only one floating above the moving average, with exception of the 8-week moving average. There is still a chance that the projection estimation may not come through.

Fig 3. Hang Seng weekly Chart

We finally come to Hang Seng index. While it has been consistent so far staying below the moving averages, the set up since 13th March 2022 (a reversal indication) it gives me a feeling that Hang Seng is in a correction phase. 

There are more indications recently with continuous congestion since31st July 2022. While Powell's speech shook the world, it did not cause Hang Seng to go lower, but instead staying within the congestion band.

It is therefore possible for Hang Seng to move upward at least towards its 55-week moving average with formation of a rectangle.

If based a projection setup, we see a resistance between 22,548 to 23,466, where present 89-week moving average lies. But 22,523 is a level to watch out for as this is the boundary of the rectangle formation.

If I conduct a projection measurement using the rectangle formation, the support levels are 20,381 to 19,104, which explain the present congestion.