Wednesday 24 June 2015

China continues to swing

Day to day price volatility in the China equity market continues to increase, with the Shanghai comp' having swung from a morning low of 4264, but settling +2.2% @ 4576. Further weakness this summer looks due, a natural retrace of the giant ramp from summer 2014 remain the 3400s.


China, daily



China, monthly


Summary

Suffice to add... the China equity market is increasingly unstable. All things considered, further weakness under the psy' level of 4K seems very probable. A washout to the key breakout level in the 3400s remains very viable. From there... 6K... and upward in 2016.

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Looking ahead

Wednesday will see GDP (rev'2), corp' profits, and the EIA oil report.

*as ever... the market will be especially vulnerable to any 'spooky' Greek news headlines. 
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Goodnight from London