By Chris Becker
The bull market in US stocks (most of which was in the Obama Presidency, btw) remains intact with Wall Street finishing in the green on Friday night. But volatility is returning to the stage, and other once correlated risk markets continue to decouple, especially European and emerging markets. While the S&P500 has been able to navigate through the Turkish contagion, Trump’s tarriff trade chaos amongst others, it has yet to revisit its January highs, which is particularly telling as we go into the “selling season” that is August and September.
Looking at Chinese stocks first, the Shanghai Composite made a new weekly low, taking out what had been firm support at the 2700 point level. Momentum remains oversold but overall acting properly like a bear market, so this could fall even more swiftly this week as the Yuan also remains in near freefall:
