by Chris Becker
Is the dip already over? Most stock markets in Asia put in positive or scratch sessions taking the shaky but still positive lead from US stocks overnight. Currencies were effectively unchanged with a small rally in USD against Yen offset by a lower Aussie and Kiwi dollar as commodities pulled back slightly.
The Shanghai Composite closed in the green, but barely, only up a few points to 3248 points still unable to substantially climb above local support at the 3200 level. The Hang Seng Index closed down, but again only just in scratch territory at 24308 points, also just above recent resistance, now support at 24000 points. Is the pullback over because the high moving average is still being respected here:
Japanese stocks also put in weak sessions with the Nikkei up nearly a quarter of a percent to close just above the 19000 point level. Yen remains firm against USD but the USDJPY did show a small bounce from the Tokyo open that is now tapering after hitting ATR resistance at the 111.50 level. Watch the trendline on the hourly chart to come under pressure tonight:
S&P futures have pipped a little higher but the last few hours has seen barely any further carry through with all eyes on Janet Yellens speech tonight:
The ASX200 finally had a positive session, closing up 0.4% to be just above previous support at 5700 points.
The Aussie dollar was sold off initially on the Sydney open, unable to break above rolling ATR resistance before firming slightly in the last couple of hours. Note however that the low moving average remains the mid point of control with no substantive move higher indicating the bears are in control here:
The data calendar continues tonight with German consumer confidence and the ECBs monthly bulletin, but more importantly Fed Chair Janet Yellen has a speech at a conference later in the session.