By Chris Becker
Crisis averted. Stocks bounced back in the US overnight after European bourses continued the selloff that wiped out Asia yesterday. The Volatility Index (VIX) went nuts (yes, that’s the technical term) ensuring a nail biting ride, but for currency traders it was a relatively calm night. Is this the bottom? Futures for European and Asian shares are all up this morning, although I suspect a dead cat bounce, the usual BTFD meme remains intact.
Recapping action in Asia yesterday where in mainland China the Shanghai Composite fell over 3%, gapping right through terminal support at 3400 points, closing at 3373 points. The daily chart below showed how strong support at 3400 was for anchoring expectations, so given the rebound in US markets should provide a rallying point from here:
