By Chris Becker
A mixed night on risk markets with US stocks retracing while the FTSE launched higher helped by a near three year low in Pound Sterling as hard Brexit becomes a reality. Interest rate and currency markets are poised for tomorrow’s FOMC meeting while commodities lifted slightly with gold eking out a new weekly high.
Looking at the action on Asian markets yesterday, where the Shanghai Composite drifted lower, closing 0.15% lower at 2941 points and still quite unable to get back above 3000 points while the Hang Seng Index fell sharply, down 1% to 28106 points. This takes out the recent support level at the 28100 point area for a stark breakdown, and although momentum is not yet negative this is a solid bear signal. I’m watching ATR support at the 27700 level for signs of a capitulation:
