By Chris Becker
Emerging market ructions are the de jure explanation for wobbly, confused markets right now with a nexus of risks, both real and imagined impacting US stocks particularly overnight. The real weight of risk descended on US Treasuries last night, gobbling up huge demand in another Fed auction, with stocks ignored and oil sold off as inventories rose more than expected State-side. In Europe the mood was better, devastating earthquake in Italy aside, with only the FTSE closing lower.
The Shanghai Composite had another poor session yesterday, falling a few points and remaining stalled above its previous support level at 3000 points. The market needs to clear the previous daily high and positions are being unwound in the opposite direction – not good to sustain this breakout:
