By Chris Becker
Stimulus packages are pumping air into the carcass that is the dead cat like a bagpipe, with Wall Street rallying on hopes that the cheques from Congress will save the next quarterly earnings bell. The fact that initial jobless claims came in at over 3 million was swept under the rug, as were the growing piles of dead bodies in tent-city morgues just down the road in NY. Interestingly, the daily White House COVID-19 press conference is being held after the close, which has been in the past a great entry point for short sellers.
Looking at Asian share markets yesterday, where the Shanghai Composite looks set to close with a scratch session currently at 2782 points while the Hang Seng Index has fallen about 0.7% or so to 23394 points, unable to keep above above its high moving average on the daily chart and hence still in swing mode only. The daily chart is still showing significant anchoring and firming support but I still contend this will stall out at around 25000 points:
