By Chris Becker
The end of quarter re balancing on very bullish stock markets was overshadowed on Friday night by increased volatility on currencies, with the chance of an “unfriendly” Brexit sending Pound Sterling sharply lower. The other undollars also retraced from their recent rally as USD strength came to the fore with renewed vigor by Trump to stamp out the Chimerica relationship. Commodities continue to be mixed, with oil prices still elevated, LME Copper surging while gold remains depressed.
Looking at Chinese stocks first, last week saw the Shanghai Composite bounce very strongly off of terminal resistance at the 2600 point level after cruising down into a decelerating price pattern. It fell short of key resistance of 2800 points but this bodes well for a swing move higher so watch for price above the high weekly moving average:
