by Chris Becker
Well its not looking good for risk markets out there with classic dead cat bounce patterns everywhere as the bear market rally loses traction. Maybe on the back of the Iowa caucus vote, more likely it was another big drop in oil prices as Exxon posted a huge earnings slump, giving the USD a big boost as did bonds, with a 10 point rally in US Treasuries. The German unemployment rate fell to 6.2% and as the only rate that matters, this gave Euro a big push as well.
Recapping Asia’s session where the Shanghai Composite is oscillating around a point of control at 2700 points, and rallied yesterday over 2% back to where it started this time last week. Price must come up above terminal support at 2900 points and close above there for this market to be saved anytime soon:
