By Chris Becker
The risk on rally seems to be running out of steam with US stocks retreating overnight even as oil prices rise and the USD weakened, as Chinese internal economic data yesterday failed to heighten the risk on mood. The Bank of England held fire, but indicated it may start tapering its stimulus package, sending Pound Sterling higher and taking the rug out from under the FTSE as other European markets fell in sympathy.
Recapping Asia yesterday the Shanghai Composite retreated after stalling below resistance at 3400 points, down 0.4% to 3378 points. The daily chart continues to show a lot of congestion here at just below that level, and yesterday’s pullback could signal a wider dip or correction if not filled quickly:
