by Chris Becker
As expected, markets gapped down on the open on the reaction to Fridays terrorists attacks (another reason markets should be open on the weekend), and then for the main rallied, except copper and other industrials. WTI oil spike but settled as the USD regained dominance against the major currencies. Bond action was interesting again with Treasuries not moving, but interest rate swaps getting weird and inverted.
Recapping Asia’s session where the Shanghai Composite lifted slightly, getting above 3600 points in a post-lunch rally. The daily chart shows overbought action here but there is a sign of congestion here for a possible breakout up to 4000 points as selling resistance disappears:
