By Chris Becker
Are we getting through the crazy scenario where bad economic news equals risk jumping in with both feet as rates start to normalise? That happened overnight with an increase in US consumption combined with lower oil prices as US stocks rallied following a dour mood in Europe, mainly on the lack of direction from The City, where the UK was having a holiday. An expected pullback in the strong USD occurred as well, but the main catalyst is a weaker Yen that should further support Asian stocks today.
The Shanghai Composite had another scratch session yesterday, still stuck at 3070 points after last week’s breakout. I’m still watching the clearance of the previous daily high for a breakout and a drop below 3000 for a breakdown for long/short entries:
