By Chris Becker
A strong turnaround overnight on Wall Street clawed back some very nervous traders as the week started very poorly here in Asia. Again, the weight of concern about a Trump policy has been found to be wanting as the trade war tensions abated on a rising USD, helped by what looks like a resolution in Germany over its coalition quibbles on the new immigration deal. It maybe all down to low volume though as US traders take the night off tonight for 4th July holidays.
Recapping Asia’s poor start to the week yesterday, the Shanghai Composite was in free fall, closed over 2% lower to be well below the next level of support at 2800, closing at 2787 points. Support at 3000 points is obviously very strong resistance, and while momentum is quite oversold its unlikely any dip filling on a positive Wall Street lead will get back there soon enough. Overall my downside target remains firm below at 2300:
