By Chris Becker
Quelle surprise – a night where stocks actually go down! US stocks fell over half a percent across the board, following a poor showing in Europe as nerves mount from the Great Bond Selloff. US Treasury yields reached a new high near 2.7%, with German bunds also selling off to a new two year high. Its a big week politically and economically and that’s also likely behind the nerves, with a State of the Union speech tonight by Trump followed by European unemployment and CPI prints tomorrow.
Recapping action in Asia yesterday where in mainland China the Shanghai Composite is fighting the trend after making great inroads previously, closing nearly 1% lower to 3540 points. The daily chart shows hesistation here just below the 3600 point level with no new highs signalling this retreat. A retracement back to 3500 proper would be healthy, but below that could see a swift move back to support at 3400:
