by Chris Becker
Its all about the ECB meeting and Mario Draghis press conference thereafter for risk markets overnight, where the central bank made clear its intentions of keeping the foot on the throttle in terms of stimulus as it stated that more QE “will work this time”. That worked for about half an hour as the USD was sold off massively, lifting all boats until realisation it was a trap set in and all gains were taken back and then some. And while US jobless claims hit a new record low, earnings seasons quibbles took the wind out of the sails as US stocks closed in the red, dragged down by lower oil prices as well.
Recapping China’s markets first, where after snapping in the previous session to below 3000 points, the Shanghai Composite kept falling yesterday, confirming the bearish rising wedge pattern I’ve been warning about, down 0.7 % to 2952 points. The target for this move, is the next line of support at 2850 points or so:
