ASX index sheds 35.5 points (-0.49%) as market bears take the reigns

A quick look at today: ASX ended the session around the 7,199.2 level today, after yesterday's 35.5 points decline and close at 7,234.7.

Employment Change data from Australia will be released tomorrow at 01:30 UTC with analysts expecting a decline to 25,000. Potentially significant price fluctuations in ASX are expected to follow.

While price action maintains a negative bias, Australia Wage Price Index (QoQ) (Q1) released today at 01:30 UTC with a figure of 0.8, while the previous figure was 0.8. Australia Westpac Consumer Sentiment (May) came out at -7.9, while a consensus of analysts was expecting -1.7.

Analysis of ASX's recent price action suggests ASX 200 bounced after reaching the 7,161.37 support zone, climbing 37.83 points above it. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. ASX bounced 26.04 points away from Fibonacci support at 7,173. According to asset volatility analysis, ASX's lower Bollinger Band® is at 7,171.83, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.

With market volatility ebbing, the current technical outlook indicates ASX will remain range-bound for the immediate future.

In the meantime, negative performances are also seen in other markets, Hang Seng is down to 19,561, losing 417.68 points, after ending the previous session around 19,978.

Positive performances can be seen by looking at other markets as Dow Jones is trading around 33,400 after ending today's session at 33,000 (up 1.19% today). Notably, S&P 500 rose 1.14% today and closed at 4,110.

With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as Australia Employment Change projected to decline to 25,000 while previous data was 53,000; data will be released tomorrow at 01:30 UTC.

Furthermore, Australia Unemployment Rate figure is projected at 3.5. It previously stood at 3.5; data will be released tomorrow at 01:30 UTC. Australia Full Time Employment is expected tomorrow at 01:30 UTC.

Trading mostly sideways for 2 months. ASX has fallen back around 4.28% over the past 3 months, from a notable high of 7,558.