By Chris Becker
Red October continued overnight but the falls on equity markets are abating somewhat at the 1-2% per session level with volatility decreasing from sky high levels, but confidence is still nowhere to be seen. The USD is weakening against all the majors now in response, as Treasury yields start to stabilise after their recent spike. Commodity prices are falling sharply in catchup mode, with oil down nearly 4% while gold has surprised to the upside, finally closing above $1200USD per ounce for the first time in over a month.
Recapping Asia’s session yesterday where the Shanghai Composite was slammed and fell nearly 5% , closing at 2591 points in one of it’s worst moves this year, sending it way below key support at 2600. Flip the daily chart upside down and you would call this a breakout bull market and don’t hold back, but this looks like part of a staged breakdown to the 2300 terminal support area:
