By Chris Becker
I said last week that 2018 was going to be more interesting than last year for risk markets, with a conjunction of events – least of which the end of the business cycle – sparring to bringing volatility out of the deep dark cave she has been living it for many years now. The events of Friday night, with stocks selling off the strongest in months, as the “bondcano” rages put that statement in the highlight! Never before has it been more pressing to view the market with more trepidation than now.
Looking at the longer term view on stock markets first, the Shanghai Composite screeched to a halt last week after failing to follow through on its breach above the 3500 point level. The next target to get back into bull market territory was 3700 points but the recent trajectory and momentum was too high to be sustainable. I’m watching former resistance, now support at 3400 points for signs if this is a mere correction or a broader selloff with other risk assets:
