By Chris Becker
Shock and horror as stock markets fall two days in a row as the USD returned to strength, striking down all the major currencies, washing gold over the side of its tenuous support as its more useful cousin copper plunged on the LME. Bonds rallied as expected as the risks around the US tax bill and leading up to Friday nights NFP print start to weigh on this very overstretched market.
Recapping Asian markets yesterday where in mainland China the Shanghai Composite clung desperately to support at 3300 points, down 0.2% to be just above at 3302. If it breaks, the 3200 level beckons quite fast. The daily chart showed this reversal of momentum to the negative side but also how strong support and the 200 day moving average is being respected here:
