by Chris Becker
It was a case of central bank management soothing the market complex overnight as ECB President Mario Draghi doubled down on the Euro put as shorts covered their positions in another wild leg of this bear market. US stocks were closed for a holiday (Presidents Day! I’m sure we won’t have a PM Day anytime soon…) Meanwhile, Yen and Gold were sold off as signs of stability return, with Asian stocks rallying strongly and peripheral European bonds also seeing a lot of buying up in lieu of closed US bond markets. The Australian dollar remains ebullient too, trying to get above 72 cents against the USD, but also rising strongly on the crosses.
The Shanghai Composite fell slightly yesterday, down 0.6% but remaining above the new terminal support at 2600 points. For a short term rally we need to see a close above the short term moving average and previous terminal support at 2850 points:
