By Chris Becker
US markets set the mood overnight, one of nerves and risk aversion with the S&P500 retracing back to a two weekly low, while the USD gained against all the major currencies. Treasury yields remain elevated, but largely unchanged, while the chance of another Fed rate hike in December rose again overnight. Oil prices gained a little in the wake of the Saudi’s murderous confession, while gold hesitated.
Recapping Asia’s session yesterday where the Shanghai Composite surged at the open and then some, gaining more than 4% to close at 2654 points, well above previous key support at the 2600 level and filling in the last two weeks of losses. Great two advance aside, the daily chart still looks like part of a staged breakdown to the 2300 terminal support area, but the ability to get back above 2600 and holding there could stave off further selling:
