By Chris Becker
As the noose tightens around the future of Greece, European stocks have rallied on the realisation that creditors will continue to be bailed out although the next “deadline” to whoosh by is the referendum over the weekend. In the US, stocks were up on a strong ISM manufacturing print and on expectations of a stronger NFP print this evening (earlier than usual because of Independence Day celebrations) as the ADP advance report lifted. Bond markets were muted as the US dollar begins its ascendancy once more.
Recapping Asia first, where the death throes of the Shanghai Composite bubble continued yesterday with epic volatility. This time a 5% down day down to just above 4000 points and possible short term support, which coincides with the mid-May support zone from the last correction. Again, expect the unexpected, especially as we move into very oversold territory, but the downtrend remains intact:
