By Chris Becker
Looking at Chinese stocks first, where last week saw the Shanghai Composite double down on its recent epic breakout, getting well above the 3000 point level before a late week selloff saw some sanity prevail. This continues to be due to more optimism over the US/China trade talks plus the possibility of more internal stimulus, but it’s way overdone and any lack of confidence on other markets is likely to drag this back down but still above the 200 day moving average level at 2800 points:
Japanese stocks have had a very tough week, confirming that this was just a bear market rally by flopping back below the previous support/resistance level at 21000 points. This is looking ominous and suggests a return to the November lows nearer 19000 unless Yen substantially weakens soon:
