By Chris Becker
A busy night in overseas markets with a slew of economic data overshadowed by ongoing US domestic drama. The higher than expected inflation print in the UK gave a boost to the FTSE but the rest of Europe slumped on a flat GDP print. In the US, mixed data only helped tech stocks as the USD continued to weaken against the majors as oil fell on weak IEA inventory data.
Yesterday in China, the Shanghai Composite rallied going into the close, eventually up 0.7% higher to 3112 points, finally cracking back above the previous critical support level at 3100 that could yet prove heady resistance. Is this just a temporary blip and its out of the woods? Momentum and long term price support does not suggest that so a break above the 200 day moving average (light blue flat line below in the daily chart) would be required to change that view:
