by Chris Becker
Hot money continues to wind out of long oil and into Yen and other safe havens like gold, sending Japanese stocks down while Chinese and Aussie (but I repeat myself) stocks initially rallied. Stock futures for the US and European markets are flat alongside currencies however.
In mainland China the Shanghai Composite was gaining going into the close, up almost 0.5% or so but have given that up and then some, down 0.3% to 3147 points, still unable to build above key support at the 3100 point level. The Hong Kong based Hang Seng Index is similarly in the red, down 0.2% to 25656 points, still above ATR support but again rejecting the 26000 resistance level above as momentum wanes:
With the Yen firming, Japanese stocks have put in a slight retreat with the Nikkei 225 off 0.15% to finish only just above 20,000 points. The USDJPY pair is pushing back down to the 111 handle on safe haven buying and is now starting to threaten ATR support line at 110.75:
S&P futures are mixed as we head into a cautious European session with the potential to break daily/4 hourly ATR support here as momentum remains negative:
The ASX200 has rallied on short covering after yesterday’s drubbing, rising 0.7% to pip just back above 5700 points. Will this be enough technically to get it back on its feet? I don’t think so, with my next target in the mid 5500’s here.
The Aussie dollar is decelerating into a potential bottom spot here at the 75.40 level but its still falling as await the London open. Once that level breaks, its off back to a full retracement at around 73.80 or so:
The data calendar is quiet again tonight with US initial jobless claims and the latest monthly house prices the only events of note.