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Equity markets very much in the red this morning after selling off hard on Friday and over the weekend. Three main drivers being China ,Greece and the US Fed.
Lack of reactionary government intervention in Chinese stock markets has sent the relatively unsophisticated retail investors that make up the majority of the market packing.
That in turn has created a perceived dearth of demand for commodities as outside investors use stock market volatility (rightly or wrongly) to construct a bearish view of China’s economy.
This in turn spurring widespread concerns about growth in Asia-Pacific AND the rest of the world.
Snap elections in Greece a grave concern for market participants despite EU officials’ confidence that a third bailout can still be implemented without hindrance. Note THIRD bailout!
The US Fed appeared to be ready to hike interest rates in September and, with potential moves away from a macro-data driven decision, markets are genuinely worried about being shocked. Gold benefiting as a no-frills safe haven in such an environment – together with competitive currency devaluations in Asia.
UK 100 currently -2%
Wall St. -2%
DAX – 2%
While all major indices are down by a considerable amount, all have pared early losses. Note this may be on short covering, since there’s little in the way of positive news this morning.
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UK 100 has pared initial sub-6000 losses (hitting 2013 lows) to head back up around 6100. Note daily RSI well oversold, though not bottoming out just yet. Last 2 times the RSI was significantly oversold, circa 500pt recoveries followed. Will we see another? or 3rd time unlucky?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Germany’s DAX found support again just north of 9500 this morning. Daily RSI again very oversold with current market action reflecting this. A test of 10,000 would please bulls looking at technical indicators while bears relying on no good news to push things lower.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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US Dow Jones futures found support at round number 16000, just north of Oct 2014 lows. Last time Wall St’s RSI was oversold a 1-week, 1000pt recovery followed.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold’s in a consolidation pattern, off highs as a small and potentially short lived equity bounce dents safe haven demand. Consolidation before continuation of uptrend?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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