By Chris Becker
The recovery continues, particularly on US stocks which rallied strongly on Friday night as 2018 brings forth more volatility and hence more opportunity. This bounce has not yet returned all the losses yet, and particularly outside Wall Street, the technical picture is still not as rosy as it seems. For mind we are still in a short covering phase, not full blown recovery, but the tide is slowly turning.
Looking at the longer term view on stock markets first, the Shanghai Composite finally returned from its NY holiday and gapped up significantly, with a follow through to almost reach 3300 points. This is the post-correction target to breach and confirm a full recovery on the way. Note how key support at 3000 points was well respected:
