By Chris Becker
Stock markets were relatively quiet last night with modest gains in Europe offset by weakness in US stocks on the back of a worse than expected trade deficit. Oil rocketed higher, breaking out of its downtrend pattern, while bonds tread water. With Chinese markets closed its easy to equate this recent rally with hope that the worse of the bear market is behind us, as the VIX deflates from its recent breakout highs too. Wait and see mode activated.
Recapping Asia’s session, where the Shanghai Composite remains closed for the Golden Week holiday. The Nikkei 225 closed up another 1% yesterday but sold off in the futures. As I said yesterday, we’ve still got enormous selling resistance overhead as indicated by the ATR stop and former support, now resistance at 19000 points, before calling a bottom:
