by Chris Becker
A reversal of fortune overnight as markets pre-position themselves for the ECB interest rate meeting and some more “Mario sauce” in the form of stimulus. Stocks basically recovered half of their previous session losses, while oil rebounded to a new daily high as bond markets saw a broad selloff, especially in US Treasuries. In currency land, while gold slipped a little against USD, Yen also weakened, but the Aussie dollar is going for gold!
Recapping Asia’s session, the Shanghai Composite fell over 1% as the euphoria from the government announcement of supporting growth – and hence iron ore and share prices – slowly bled off. The daily chart still 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:
