Whilst US equities started the weak moderately weak, the China market has resumed normal service, after interest rates were lowered for the third time this year. The Shanghai comp' has a viable floor of 4099, and is already back to 4333. Continued upside to the giant 5K threshold looks very probable.
*I continue to think it is useful to keep in mind many of the non-US markets, as everything is connected of course.
So... a second consecutive daily gain for the SSEC, and there will be clarity on any daily close >4572.
Considering the recent rate of gains, 5K looks viable by late June.
From there.. a natural retrace back to the multi-year breakout zone of 3500 looks probable... and yes.. that is a VERY powerful 30% lower.
Tuesday will only see US Treasury budget data.
*Fed official Williams (the T-shirt guy), will be talking in the lunch hour, and Mr Market will again be listening for any talk of int. rates or equity valuations.
Goodnight from London