Russia, monthly
China, monthly
Summary
*first, a closer look at the Shanghai composite, which when seen on a daily chart.. really did go crazy bullish since July.
SSEC, daily
An incredible ramp, roughly.. 2k to 3k.. a 50% ramp across just 8 months. 3500 will no doubt be hit after the current 'shaky retrace' is complete. The real issue is whether a sustained break >3500 next year... if yes, then 5/6k.. which would bode for broader Asia market strength... and that would surely feed across to the US and even weak EU.
--
re: Russia... a new multi-year low of 846. If the 800s fail.. .which now seems very viable - not least if Oil slips into the $50s, then the secondary target of mid 500s would be a valid target for first half of 2015.
--
Greeks.. remaining a basket case
An extreme -12% daily decline for the Greek market.. especially weighed down by the announcement of an earlier than expected 're-authorisation of the presidents term'. So.. not long to wait.. and it'll certainly add some 'spice' just before Christmas!
Greece, daily
Price structure was a large bearish flag on the daily, today's break lower was not a surprise, but the scale certainly was, the biggest one day decline since 1987. The Athex needs to hold the Oct' low of 852.. or the summer 2012 lows (471) are once again viable. That sort of renewed collapse would be a real problem for other EU markets, via a spillover/contamination effect.
--
As for the US market... unless Dow 17k fails at some point... there is nothing for the equity bears to look forward to.
USA - Dow, monthly, 20yr
Looking ahead
Wednesday will see the US Treasury budget, although these days.. hardly anyone cares. After all, if the treasury lacks enough tax revenue to cover expenditure.. just issue more bonds.. and the Fed will indirectly buy the bonds (from select institutions) with new 'QE money'.
--
Goodnight from London