Macro Morning

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By Chris Becker

Risk has turned off the confidence taps and slid into hesitation mode as the US NFP monthly event rolls around. Last night saw US stocks barely eke out a gain as Trump announced the new Federal Reserve chair, while his tax plan finally saw the light of day but did not impress. Facebooks earnings disapointed, while Tesla slumped nearly 7% on its worst quarterly loss – something that I think will deepen again in the next quarter – but its not quite the right time to buy the dip on that stellar stock yet….

Recapping Asia yesterday first where in mainland China the Shanghai Composite has slumped, falling over half a percent to be at 3377 points, still just below previous resistance at 3400 points once again rejecting that level.The daily chart shows how price is now bunching up between the trend line from the 3000 point low and resistance overhead, which is signs of an imminent breakout/down, so watch very closely:

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