Macro Morning

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By Chris Becker

Its nearing the end of the month/quarter/financial year and traders are getting a little complacent given the big moves in China recently, both stock and currency wise. Overnight both German CPI and US GDP prints undershot, although still very positive, with the Euro unmoved in the end while US stocks had a mile reprieve on bank stock short covering. Today is looking quite mixed here in Asia with selling exhaustion probably settling in.

Recapping stocks in Asia yesterday first where the Shanghai Continues continues its sell off, cracking below 2800 points for the first time, down 0.65% to close at 2795 points and deep in bear market territory. The selloff has accelerated, with support at 3000 points now very strong resistance, momentum is quite oversold (below 2 SD) so we could see a minor rally soon. But overall my downside target is still firm below at 2300:

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