by Chris Becker
Yesterday’s positive start to the week in Asia is building after reacting to a very positive night on Wall Street overnight, with green across the entire board. Stocks have risen as the USD takes a breather with Aussie dollar and gold and other commodities lifting. .
The Shanghai Composite is up another 20 points or nearly two thirds of one percent, continuing to build on its bear market rally, currently at 3240 points and on its way to my target at 3400. The Hang Seng is doing even better, up 1.4% through to 22670 points. Finally a sign its correction may be over with a break of the downtrend:
In Japan, even with a tsunami warning, the Nikkei was pushed to another new daily high up 0.3% to maintain over 18000 points. Some buying of Yen due to the tsunami has seen USDJPY moderate and pause at just below the 111 handle, setting up for a possible, but not probable swing short:
S&P Futures are up firmly heading into the European session with 2200 points the target:
Meanwhile, the ASX200 is finally playing catchup, up over 1% or 62 points to over 5400, breaching resistance and possibly setting up for a swing long up to 5500 or more.
This is in the face of a stronger Australian dollar, which has rallied from the London low last night, right now just below the 74 handle against the USD. A little too fast so far, and extended on the hourly charts, but could pick up pace going into the European session where resistance at 74.70 is my target:
Another quiet night for data watchers on the economic calendar, with probable catalysts spinning from news/non-news about Trump and oil…