By Chris Becker
Last week saw a possible pause in Trump’s trade war with a possible deal – not a deal-deal, but some kind of a deal, tremendous deal probably, maybe – between the US and Europe staving off wider concerns. Not so with Chyna however, which is keeping Chinese stocks depressed and the Yuan selling off swiftly to new lows against USD. The ECB meeting came and went without incident, as the dovish central bank kept its path to normalcy on the easy side.
Looking at Chinese stocks first, the Shanghai Composite is trying hard to get out of its bear market phase, finishing at just below 2900 points. Weekly momentum is still considerably oversold and while there is a potential to bottom out here at the 2016 lows it’s clear that a bounce in the short term will face considerable overhead resistance at the 3000 point terminal support/resistance level:
