by Chris Becker
Stocks were broadly positive across Asia today taking the good level from US stocks overnight, with the USD weakening against the majors and gold, which is closing back in on the $1300USD per ounce level. The lack of economic and geopolitical catalysts are definitely calming markets this week.
In mainland China the Shanghai Composite is having a pause, falling nearly 0.3% going into the close at 3379 points, hitting and rejecting that key resistance level at 3400 points. The Hong Kong based Hang Seng Index is making good on its own pause and lifted 0.4% higher to be at 28499 points, still above local resistance at the 28000 point level and looking to break higher:
S&P futures are relatively steady again with a melt up higher as support and resistance remain very clear on the four hourly charts:
Japanese stocks continue to do well despite the stronger Yen with the Nikkei up another 0.35% to close out at 20954 in what looks like a crazy move higher that has to blowoff soon . The USDJPY pair is slowly melting down to the 112 handle after going sideways last night, so it appears the correlation between Yen and stocks is broken. I’m target the 112 handle proper for a breakdown where 108 is the target on the daily and weekly charts:
The ASX200 had another good session and closed 0.4% higher at 5794 points, almost cracking 5800 points and staying well above the 200 day moving average. The Aussie dollar continues to surprise with another blip higher through the session, now slightly above the 78 handle, and if it breaches overhead resistance, I’ll have to change my bearish mind here!
The data calendar includes two things of note, namely US initial jobless claims and then a talk by ECB chief Mario Draghi in Washington.