by Chris Becker
What noise shall we move on today? I know – Chinese trade data! Yes, it was all about the export slump that sent stock markets down, industrial commodities selling off and a race to safety in the form of Yen, USD and sovereign bonds. This has not yet snapped the bear market rally’s neck, but it shows how tentative confidence is right now. Overhead technical resistance on most markets has been rejected, so without a follow through in the coming days, we could see a full rejection thereafter and back to the bear market lows.
Recapping Asia’s session, the Shanghai Composite again ignored most of the volatility in metals and ore markets and closed up only a few points higher. The daily chart shows the tight range forming between that support and overhead resistance at 3000 points, which just can’t be cleared and would be my signal for a significant rally – up to the next level of resistance at 3400-3700 points:
