Whilst US equity indexes saw a day of very muted price action, there were notable gains in the Chinese Shanghai comp', which settled +3.3% @ 3287. A few daily closes >3400 would be suggestive the communist leadership have finally achieved their aim of stalling the down wave from June.
Clearly, the SSEC is challenging the declining resistance/trend, but infinitely more important is the 3400 threshold.
Lets be clear...
A failure to clear 3400 would be a real problem for the bull maniacs, and offer renewed weakness, with viable new lows into November.
On the flip side.. a few daily closes in the 3400s will offer the first real sign that the collapse wave (from the 5100s).. is probably complete.
There is very little scheduled tomorrow... just US Treasury budget data at 2pm.
*Fed official Bullard is due to speak in the early morning, and that might make for an excuse for an initial moderate sell down before resuming higher.
Goodnight from London