Macro Morning (Trading Week)

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By Chris Becker 

Looking at Chinese stocks first, where last week saw the Shanghai Composite shoot higher after its recent breakout, getting slightly above the 2800 point level as confidence returned. This was mainly due to more optimism over the US/China trade talks plus the possibility of more internal stimulus, as confidence continues to build the upside target is at least 3000 points if this breakout sticks:

Japanese stocks have been buoyed by a weaker Yen all week, but really its about other risk market correlations with the weekly chart of the Nikkei 225 showing price breaking out above former support, but firm resistance at the 21000 point level. Momentum is now really behind the market, but its a long road back to the former 2018 highs from here:

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