By Chris Becker
Markets are poised to breakdown completely with US stocks falling to their previous daily low, sent there by lower energy prices as oil tanked on the back of a mixed DOE inventory report. Jitters are extending to bond markets which have rallied somewhat overnight, as did copper and other industrial metals, sending gold up slightly. The USD slipped against the majors after its big push earlier in the week but looks set to flex its muscles again coming into next weeks FOMC meeting.
Recapping Asia’s session yesterday, where the Shanghai Composite fell 0.7% to just above crucial support at 3000 points. The 2% drop on Monday broke the uptrend from the June lows and yesterday’s session almost add it crushing through terminal support here. If it breaks we’re going down to the May/June lows at 2850 or so:
