By Chris Becker
Looking at Chinese stocks first, where last week saw the Shanghai Composite followed its pause with a lower high, albeit finishing the week above the 3000 point level. This market has gotten way ahead of itself with momentum extremely overdone so I’m looking for a potential new low below the last two week sessions lows and an inversion back below 3000, possibly down to the 200 day moving average level at 2800 points:
Japanese stocks have had a much better week, helped along by a more accomodative BOJ with the Nikkei 225 launching back above the previous support/resistance level at 21000 points. This is looking better but it needs to make a break above the high moving average or this bear market rally will soon return to the November lows nearer 19000:
