By Chris Becker
Well a month is a long time when trading markets, so as I return from a well-deserved holiday from the land of the long white cloud, the best way to initially gain a perspective on what has happened is to look at the long term charts. Usually when I have a break there’s a substantial move in volatility, and this occurred somewhat with stocks as they bounced back from what looked like a possible breakdown in a new corrective phase.
Looking at Chinese stocks first, the Shanghai Composite continued to flail under the 200 day moving average and recently took out the February correction low at 3100 points. The next level is painfully obvious at 3000 points proper and then its on for young and old:
